Bangladesh remains cash-heavy despite digital gains: PRI

Bangladesh has made notable progress in digital payments, yet it remains largely cash-dependent due to constraints, including limited interoperability, infrastructure gaps, cybersecurity risks, and low digital literacy, said the Policy Research Institute of Bangladesh (PRI) yesterday.

The research organisation shared the findings at a workshop on formulating a national strategic roadmap to move toward a cashless economy at its Dhaka office.

PRI said progress in cashless payments has been led by mobile financial services, quick response (QR) code-based payments, and online banking.

The cashless agenda must now be elevated to a national development priority, said PRI Principal Economist Ashikur Rahman, presenting a keynote at the event.

He said digital and cashless instruments are no longer peripheral innovations; they are powerful enablers of financial inclusion, economic governance, and a low-transaction-cost economy.

“When designed and deployed well, they can extend formal financial services to underserved populations, reduce informality, improve transparency, and strengthen state capacity.

“If Bangladesh is to sustain inclusive growth in an increasingly digital global economy, the transition to cashless finance must be deliberate, coordinated, and time-bound,” he added.

Arief Hossain Khan, executive director of Bangladesh Bank (BB), said the central bank is actively pursuing initiatives to promote digital payments, financial inclusion, and a secure payment ecosystem.

“Success in our transition toward a cashless economy depends on strong coordination among regulators, financial institutions, and technology providers to ensure it is inclusive for all,” he said.

PRI Chairman Zaidi Sattar said three factors determine economic growth: labour force growth, capital investment, and productivity growth.

“The cashless economy contributes to productivity growth, but the valuations generated within the cashless economy must be captured.”

To reflect digital advancements in national production, the Bangladesh Bureau of Statistics (BBS) needs to adopt the UN System of National Accounts (UN SNA) 2025 to appropriately incorporate the value added by digital and cashless transactions into GDP growth, he added.

“This process will take at least three years. Cooperation among the Bangladesh Bank, BBS, and research organisations will be required, including access to relevant data from the BB,” he said.