Transition to cashless economy needs strategic roadmap: Experts
In contrast, India processed around 723 million such transactions during the same period, highlighting what he described as a “day and night” difference between the two countries
Highlights
- Over 70% of the country's transactions are cash-based
- QR code payments account for less than 1% of transaction value
- Cenbank moves to strengthen digital payments, financial inclusion
- Economists, policymakers call for clear, coordinated roadmap
Economists and policymakers today (8 January) called for a clear and coordinated strategic roadmap to accelerate Bangladesh's transition to a cashless economy, citing low adoption of QR code payments and persistently high reliance on cash transactions.
More than 70% of Bangladesh's economic transactions are still conducted in cash, leaving the country far behind its regional peers despite ongoing efforts by the Bangladesh Bank to promote digital payments, said Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh (PRI).
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Ashikur noted that QR code-based transactions remained almost negligible. By value, they accounted for less than 1% of total transactions in October 2025, when Bangladesh recorded just 1.06 million QR code payments, he said.
In contrast, India processed around 723 million such transactions during the same period, highlighting what he described as a "day and night" difference between the two countries.
The PRI principal economist was speaking at a stakeholder consultation workshop titled "Towards a Cashless Economy: A Strategic Roadmap for Bangladesh," organised by PRI in collaboration with the Gates Foundation.
The event brought together policymakers, regulators, economists, representatives from the financial sector and development partners to discuss pathways, challenges and policy priorities for expanding digital and cashless transactions.
Ashikur pointed out that in China even the most marginalised citizens routinely use QR codes to receive financial assistance.
The keynote paper presented at the workshop acknowledged that Bangladesh had made notable progress in digital payments, led by mobile financial services, QR payments and online banking. However, it said a large share of transactions remained cash-based due to key constraints, including limited interoperability, infrastructure gaps, cybersecurity risks and low digital literacy.
The paper identified financial inclusion, reduced transaction costs and improved economic governance as major benefits of a cashless economy. Drawing on global and regional experiences, it emphasised the importance of strong digital public infrastructure and a coordinated regulatory framework. The proposed roadmap recommended phased reforms, stronger inter-agency coordination, expansion of digital infrastructure, enhanced consumer protection and fintech-driven innovation to ensure an inclusive and secure transition.
Addressing as the chief guest, Bangladesh Bank Executive Director Arief Hossain Khan said the central bank is actively implementing initiatives to strengthen digital payments, financial inclusion and a secure payment ecosystem.
He stressed that effective coordination among regulators, financial institutions and technology providers was crucial to ensure that the move towards a cashless economy benefited all segments of society.
PRI Chairman Zaidi Sattar said transaction systems had come full circle in human civilisation. While cash was once a transformative invention, he said, it had now become cumbersome for modern economic activity, pushing societies once again towards cashless modes of exchange.
The workshop was chaired by Sattar and attended by PRI Research Director Bazlul H Khondker, along with senior officials, academics and development partners.
