Laos has authorised the mining and trading of cryptocurrencies, in a policy shift by the debt-laden south-east Asian nation that positions it to profit from the crackdown on digital currency mining in China.

Analysts said the move was a logical step for the landlocked, communist-ruled country of 7m, which produces a surplus of hydroelectric power, but some warned that criminal gangs could seek to profit from the trade.

The crypto push marks an about-face after the country’s central bank last month warned banks, companies and people against using cryptocurrencies. The office of the prime minister this week said six companies, including construction groups and a bank, had been authorised to begin mining and trading cryptocurrencies such as bitcoin, ethereum and litecoin.

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The World Bank’s Board of Executive Directors last week approved US$40 million in emergency finance support for small and medium-sized businesses in Laos to help them recover from the impacts of the COVID-19 pandemic, the bank said in a press release.

The funding will be channelled through the World Bank’s ‘Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project,’ which will work with the Ministry of Industry and Commerce and local financial institutions to provide credit to small businesses struggling to cope with the economic slowdown brought on by Covid-19.

Small companies will have the chance to secure working capital loans that can sustain their businesses during the pandemic and initial recovery period, or investment loans for new equipment or expansion of facilities.

Micro, Small, and Medium Enterprises (MSMEs) are the foundation of the Lao economy, accounting for 82 percent of total employment. Such companies have been significantly disrupted by the ongoing Covid-19 crisis, with many facing sharp reductions in demand and income, as well as interrupted supply chains. Tourism came to a near standstill in the second quarter of 2020, while a lockdown in April and May limited demand for various services and halted production at many firms. As a result, many firms expect to lay off a large percentage of their workforce while half of all businesses report that they will have to close permanently.

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The UK Government and the Bank of Thailand (BoT) have signed a Memorandum of Understanding (MoU), forming a strategic partnership on financial services to support Thailand’s inclusive economic recovery and green growth in line with the Sustainable Development Goals (SDGs).

Under the MoU signed on 7 August 2020, the UK and the BoT agreed to collaborate to strengthen accounting standards; to enhance corporate governance and transparency; to support the development of Financial Technology (FinTech) to facilitate greater access to finance and business opportunity for Thai FinTech industry; to promote sustainable finance; and to support resilience in the financial system.

The collaboration is enabled by the UK’s ASEAN Economic Reform and ASEAN Low Carbon Energy Programmes.

The collaboration will share strategic knowledge and expertise on new financing trends, regulatory practices, products and services. The partnership will seek to develop the financial sector to support inclusive growth with consideration for the wider implications of policies on the economy, environment – in particular risks from climate change – and those who are disadvantaged in society.

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The National Bank of Cambodia (NBC) has announced it is preparing to launch a central bank digital currency (CBDC).

NBC’s director-general, Chea Serey, said the central bank was developing “the national payment gateway for Cambodia.”

It would serve as a blockchain-based, peer-to-peer platform with its own specially designed cryptocurrency.

According to her, the initiative is known as “Project Bakong,” which was first trialed by NBC in July 2019. However, she did not state a definite period when the CBDC would be launched.

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Veerathai Santiprabhob, governor of the Bank of Thailand, and his Myanmar counterpart U Kyaw Kyaw Maung, signed two memoranda of understanding (MoU) on October 18 during the IMF-World Bank meeting in the US.

The signing was witnessed by Myanmar’s Minister for Planning and Finance U Soe Win, according central bank statement on October 21.

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Green credit is a trend in the global banking and finance industry and more Vietnamese banks are following suit.

The State Bank of Việt Nam (SBV)’s latest survey of credit institutions (CIs) in the field of green growth and green credit released recently showed that the awareness of CIs on green credit has improved significantly.

Specifically, 19 CIs have developed strategies for environmental and social risk management while 13 CIs have integrated the content of environmental and social risk management in the process of green credit assessment.

Ten CIs have built credit products and banking services for green sectors and have shown an interest in providing credit for these sectors, mainly in the medium and long term with preferential interest rates for green projects.

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The industrial sector in Thailand, Cambodia, Laos, Myanmar and Vietnam contributed 32.3 per cent of the region’s GDP in 2017 and provided an estimated 20 per cent of the employment, said the IFC, the private-sector arm of the World Bank.

It said that industrial zones provide a good platform for supporting interventions for green buildings, clean energy, energy efficiency and climate-smart water and waste infrastructure. The proximity of multiple co-located tenants also provides opportunities for green energy, innovative wastewater treatment and other “circular economy” projects that effectively use valuable resources.

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Alterna Bank is proud to sponsor the 13^th annual Mekong Business Challenge in Cambodia, bringing together the brightest university teams to showcase how their innovation can transform lives. The Challenge is a platform for developing youth talent and for launching businesses and social ventures that will profoundly advance the communities in the greater Mekong region. Submissions this year range from innovative solutions to better the lives of those living with Parkinson’s disease, to mobile apps that would boost the education and tourism sectors.

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CIMB Group Holdings has become a member of the United Nations’ (UN) Environment Programme Finance Initiative Principles for Responsible Banking (UNEP-FI), making it the only banking group in Asean to be a founding member of the sustainable initiative.

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