The International Finance Corporation (IFC) and Bangladesh Bank have recently inked a pivotal agreement aimed at propelling digital finance initiatives in Bangladesh to new heights.

Made possible through the generous support of the Australian government, the agreement, signed on April 21, underscored a joint commitment to cultivating an environment conducive to the widespread embrace of digital payments across the nation.

In a bid to address existing challenges, the collaborative efforts of the IFC-Bangladesh Bank partnership seek to streamline and enhance the digital payment landscape in Bangladesh.

A press release issued by the IFC highlights the concerted focus on facilitating seamless transitions towards digital payment solutions.

Outlined within the agreement are initiatives to bolster Bangladesh Bank’s capacity in formulating progressive policies to drive digital payment adoption.

Additionally, comprehensive outreach programs spanning the nation are slated to be undertaken to promote greater awareness and uptake of digital payment mechanisms.

A key target of the partnership is to achieve a substantial 25 percent increase in digital payment adoption by the year 2027.

Martin Holtmann, IFC Country Manager for Bangladesh, Nepal and Bhutan, emphasized the critical role of accessible, innovative, and sustainable financial products in fostering inclusive economic growth.

Holtmann expressed confidence that the project would leverage digitalization to surmount barriers, laying a robust foundation for expanding the spectrum of digital financial services beyond mere payments, encompassing savings, lending, investments, and beyond.

Echoing this sentiment, Md Mezbaul Haque, executive director of Bangladesh Bank, underscored the central bank’s commitment to realizing the national vision of a ‘Cashless Bangladesh.’

Haque articulated the aspiration to cultivate an ecosystem wherein every conceivable payment need can be seamlessly fulfilled through digital channels, rendering cash transactions obsolete.