Q.

Write a focus writing on the Bangladesh Bank’s initiative 'Cashless Bangladesh, Smart
Bangladesh'.

To make the exchange modes for goods and services easier people reinvented different modes of
exchange, moving from bartering to using coins and paper money, later plastic cards and recently digital
payments. Though Bangladesh has a long way to go to become a cashless and cardless society, the
trends begin very strongly. On January 18, 2023, Bangladesh bank launched Bangla QR (Quick
Response) transaction in a gorgeous inauguration ceremony, where 10 Banks and MFSs participated.
This initiative, called as 'Cashless Bangladesh, Smart Bangladesh' will truly take Bangladesh towards a
cashless society.

The Bangladesh Bank (BB) launched this campaign from the capital's Motijheel area to bring
small/micro merchants, like street vendors, under a low-cost payment system. The campaign is part of
the idea to popularise an interoperable Bangla QR Code across the capital that will help clients pay their
bills for goods and services through mobile banking applications, mobile financial services (MFS), and
payment service providers (PSP).

Initially, the initiative covers some 1,200 small merchants in the capital's Motijheel commercial area.
Later, it will be replicated in other areas of the country in phases. The central bank's campaign will
promote cost-effective, secured and card-less digital transactions in an economy that almost entirely
relies on paper currencies.

It is very cost-effective for both users and merchants. It has been reported that if Bangladesh can
properly implement QR transactions, the Gross Domestic Product (GDP) will increase by 1.7%.
Singapore is fully utilising QR in all aspects. So, physical cards have been obsolete in Singapore. India
is also widely using the QR at the micro merchant level. It is mentionable that during the corona
pandemic, cashless transactions became very vital and popular. We experienced that cashless
transactions increased significantly worldwide also in Bangladesh.

QR code usage has exploded over the past six years, as multitudes of companies began using them for
everything, from advertising and promotions to merchandise tracking and coupons, and more. A quick
response code (QR code) is a two-dimensional code of black and white squares that can be read by
smartphone cameras, point of sale (POS) terminals or other devices. QR is very openly being used by
Dutch-Bangla Bank NexusPay, Islami Bank, Eastern Bank, City Bank, Bank Asia, Mutual Trust Bank
etc, and MSF like Rocket, bKash, mCash etc. Some other banks are also coming with QR on small
scales.

It is very easy to use. Merchants and users both are comfortable using it. Even small shopkeepers,
cobblers, tea stall and barber shop owners can receive payment through QR. Any individual owner like
Pathao and Uber can take payment through QR. Those who do not have trade license can open retail
merchants account permitted by Bangladesh Bank. Bangladesh Bank now introduced inter-operable
transactions among banks and MFSs. It will help customers not to keep cash or cards with them. Only a
smartphone is required.

Now a strong collaboration is required among banks, mobile operators and payment service providers to
give momentum to the cashless Bangladesh, which will be a big move towards “Smart Bangladesh”.
The electronic payment mode has an important role to play in making the economy vibrant as it
encourages people to engage in economic activities. Our people are very much enthusiastic to use digital
services. This is high time to accelerate the QR-based transaction at the grassroots level. And this seems
the main objective of the initiative 'Cashless Bangladesh, Smart Bangladesh'.