As Bangladesh accelerates its journey towards a cashless economy, experts have stressed that the transformation must be inclusive, addressing risks of inequality, financial exclusion, and overreliance on a handful of private players.
Speaking at the Cashless Bangladesh Summit 2025, Dr Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD), cautioned that “a cashless economy should not transform into an incomeless one.” Instead, he argued, digital finance should serve as a catalyst to generate income opportunities, particularly for those in the informal sector who remain outside formal banking systems.
The summit, jointly organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and Mastercard in Dhaka, brought together policymakers, regulators, bankers, fintech leaders, and economists to chart a roadmap for digital transformation.
Robust growth in digital finance
Bangladesh has already witnessed a rapid adoption of digital finance. According to a recent paper presented at the summit, transactions through mobile financial services (MFS) in 2024 amounted to Tk17.37 lakh crore — equivalent to nearly half of the country’s GDP, reflecting a year-on-year growth of 28.4%.
Data show that 84% of all banking transactions are now digital, with 56% conducted online, 28% via MFS, and the remainder through cards. The government has also expanded digital platforms for social allowance disbursement, scholarships, tax payments, utility bills, and ticketing, with Bangladesh now accounting for 8.6% of global daily mobile money value.
Nearly half of the population (47.8%) uses MFS wallets, 44% use internet banking, and around 30% rely on debit, credit, or prepaid cards. Monthly MFS transactions alone exceed 1.3% of GDP, making digital payments central to economic activity.
Challenges of a digital divide
Despite this progress, Debapriya warned that the benefits remain unevenly distributed. More than 84.9% of the working-age population are informal workers, most of whom remain heavily cash-dependent due to lack of access to banks, smartphones, and digital literacy.
“Without deliberate policies, a digital economy could deepen inequalities rather than reduce them,” he said. He recommended tax rebates, Merchant Discount Rate (MDR) waivers for small vendors, and direct incentives for micro-merchants to expand digital adoption in low-income segments.
Fraud and cybersecurity risks are also on the rise. Surveys suggest one in ten MFS users has faced scams or financial fraud, often due to weak user awareness and limited safeguards.
Regulatory and institutional gaps
Experts at the summit highlighted regulatory weaknesses as another hurdle. While licenses for digital banks were issued in 2023, many remain non-operational. Heavy reliance on a few MFS providers, particularly bKash and Nagad, has created systemic vulnerabilities in the financial ecosystem.
Dr Debapriya urged Bangladesh Bank to take the lead in ensuring a secure, interoperable, and inclusive system. He proposed forming a central taskforce including regulators, banks, fintechs, telecoms, and ministries to coordinate reforms, enforce compliance, and reduce the country’s Tk20,000 crore annual cash-handling costs.    Bangladesh Bank Governor Ahsan H Mansur echoed concerns over rising dependence on cash, noting that printing money costs are growing by 10% annually — around Tk2,000 crore each year. “If this continues, how can we build a digital economy?” he asked.
Masrur Riaz, chairman of Policy Exchange Bangladesh, argued that Bangladesh could learn from the experiences of China, India, and Sweden in driving large-scale adoption of digital transactions. He called for enabling wholesale and corporate digital payments, investing in infrastructure, and building consumer trust.
In the closing session, Finance Secretary Dr Md Khairuzzaman Mozumder, NBR Chairman Md Abdur Rahman Khan and industry leaders stressed the importance of progressive reforms, regulatory sandboxes, and tax incentives to balance innovation with consumer protection.
ICMAB President Mahtab Uddin Ahmed described Bangladesh as being at a “critical juncture” in its financial evolution. “The shift to a cashless economy is no longer a distant goal but an immediate necessity,” he said. Syed Mohammad Kamal, country manager of Mastercard Bangladesh, added that the company was committed to supporting the transition. “A cashless society drives innovation, enhances efficiency, and expands financial access across all sectors and communities,” he noted.
Md Habibur Rahman, deputy governor of Bangladesh Bank; Mashrur Arefin, managing director and CEO of City Bank PLC and chairman of The Association of Bankers, Bangladesh (ABB); Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC; Ali Ahmmed, chief commercial officer of bKash Limited, Anita Ghazi Rahman, founder and managing partner of The Legal Circle and other panelists were present the event.