Japanese financial platform company Soramitsu has announced the signing of a memorandum of cooperation with the online banking payment system software unit of the Lao people's Democratic Republic to run the new proof-of-concept project of the Bank of Myanmar Digital currency (CBDC). According to the agreement, a Burmese Kip digital format called DLak will be released on February 7th.

According to a short video, the central bank will give DLAK to commercial banks in exchange for legal tender, while users will convert legal tender into DLAK at commercial banks. Users can then use QR codes and applications to buy directly from participating merchants.

The DLAK will be immediately converted into a Fiat car by a commercial bank, so that merchants can receive payment at any time. Previously, a digital transaction in Myanmar took nearly a month to be repaid.

Obviously, users don't need to have a bank account to trade with DLAK. The diversification of the financial sector for people who do not have bank accounts is one of the statements that the project has been boycotted. According to Nikkei Asia, about 70% of Laotians do not have a bank account.

The DLak project will be modeled on Vietnam's Bakong system, which will be launched in collaboration with Soramitsu in 2020. This system is not described as CBDC. The Bakong device gained 200000 users in a few months and began experimenting with cross-border trading in 2021.

Simplifying overseas remittances is one of the goals of DLAK. In addition, there are also:

"CBDC is a form of promoting the diversity of payment platforms, all through a way to ensure economic security by not relying on the local currencies of other countries."

According to the Nikkei Asia region, under the premise of trading with domestic countries that introduce digital currencies, Bakong and Drake will help to maintain the stability of their respective currencies. Soramitsu indicates that it is still conducting CBDC scientific research in Fiji, Vietnam and the Philippines.