A Roadmap for a Progressive, Agile, and Resilient Central Bank Enabling Bhutan’s Economic Transformation
The Royal Monetary Authority (RMA) has prepared a 10-year (2021-2030) strategic plan, titled Druk Nguldrol Lamtoen-2030, which sets out a roadmap for the RMA to navigate the changing financial landscape of the 21st century.
The roadmap envisages a substantial injection of financial resources for Bhutan to become a high income country by 2030. The RMA, states the document, is committed to contributing to the realization of the goals of the 21st Century Economic Roadmap.
The financial sector plays a pivotal role in achieving the government’s economic transformation initiatives. Through the Druk Nguldrel Lamtoen – 2030, the RMA and the financial service providers aspire to support the government through building a responsive, resilient and innovative financial sector.
To harness the benefits of the evolving technology, the RMA is considering the development of the Central Bank Digital Currency (CBDC).
“CBDCs have immense potential to enhance financial inclusion and provide an alternative digital payment instrument, including for cross-border transfers that is safe, efficient and cost effective while ensuring the central bank’s financial stability and monetary policy objectives. This initiative will complement our overall efforts in moving towards a digital economy,” states the roadmap document.
With the growing interest in digital assets as an emerging asset class for investment, the RMA will study the governance ecosystem and potential for inclusion of digital assets in the country’s foreign asset management.
To further consolidate Bhutan’s reputation as a global leader in environmental conservation and sustainable development, the RMA and the financial sector will promote sustainable and green finance with particular emphasis on stimulating savings and investments in green projects.
The RMA will reportedly collaborate with the financial service providers in building skills for the future workforce of the financial sector particularly in digital banking, emerging technologies, data analytics, and cyber security and evolving business models.
“The National Digital Identity will be leveraged as a key anchor to transform the financial sector through FinTech services, data analytics and research, and strengthening of international payments gateways,” states the document.
In order to ensure its relevance with changing times, the Druk Nguldrel Lamtoen – 2030 will be a live document with subsequent versions incorporating better forecasting and data-driven targets through the application of data analytics and quantitative tools, according to the RMA.
Finance Minister Namgay Tshering launched the Druk Nguldrel Lamtoen – 2030 on august 25.
According to the RMA, the preparation of the roadmap was inspired by His Majesty The Druk Gyalpo’s command to the government to develop an Economic Roadmap for the 21st Century during the 112th National Day Royal Address.
Dechen Dolkar from Thimphu