Yasuto Watanabe outlined efforts to make cross-border payments in ASEAN+3 faster, cheaper, more transparent, and supportive of financial inclusion and local-currency use. He noted that global progress remains below G20 targets, particularly for timely wholesale transactions.
ASEAN+3 has advanced retail connectivity through QR payments and linked instant payment systems, while Project Nexus offers a multilateral model for integration. Different economies may require tailored approaches, including tokenization and stablecoins, but wholesale settlement, foreign exchange coordination, and regulatory differences remain challenges.
Yasuto Watanabe discussed cross-border payment advancements in ASEAN+3, emphasizing fast, cheap transactions with regional integration through models like Project Nexus, various digital assets, and targeted coordination efforts.
The Changing Landscape of Cross-Border Payments
Yasuto Watanabe, Chief Executive of AMRO, delivered a keynote speech at the Bangkok Digital Finance Conference on October 15, 2026. His address focused on evolving cross-border payment systems, emphasizing the importance of faster, cheaper, and transparent transactions that promote financial inclusivity and the use of local currencies. The global efforts, spearheaded by the G20’s payment roadmap, aim to address cost, speed, and transparency challenges, although current progress falls short of aspirations. For instance, in 2025, only 55% of wholesale cross-border transactions were completed within an hour against a target of 75%, highlighting the challenges faced in the sector.
ASEAN+3: Leading the Way in Payment Connectivity
ASEAN+3 is at the forefront of regional payment connectivity, leveraging advancements in retail payment systems. Notable achievements include cross-border QR payments and instant payment system linkages, as seen in the Thailand-Singapore PromptPay-PayNow integration, which enhances speed and cost-efficiency. However, expanding these systems entails increased complexity and costs, necessitating multilateral solutions like Project Nexus. Nexus provides a unified approach to linking payment systems across various economies, simplifying access to regional markets. Yet, while retail connectivity progresses, wholesale cross-border payment systems pose greater challenges due to the need for coordinated settlement systems and secure foreign exchange arrangements.
Diverse Models for Diverse Economies
Considering varied economic priorities, a single cross-border payment model may not suit all. As different economies possess unique policy goals, tailored systems are essential. Emerging economies may prioritize financial inclusion and remittance facilitation, while advanced regions focus on infrastructure refinement. Thailand serves as an example, having established a robust network for regional payments and participated in projects like Project Nexus and initiatives exploring tokenization. Conversely, Japan enhances its existing domestic system for cross-border capabilities through projects like Project Agora. Effective regional integration relies on these models working harmoniously, acknowledging the diversity in regulatory frameworks and economic contexts as digital assets like stablecoins gain prominence.
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