Bangladesh Bank has introduced a new framework to simplify and modernize cross-border digital payments, aiming to expand digital financial inclusion and promote trade in services.

In a circular issued on Wednesday, the central bank announced the launch of a Bank-Intermediated Framework, under which customers will be able to use a Digital Value Account (DVA) to make foreign currency payments for a range of international transactions.

Under the framework, a DVA will function as a digital wallet or stored-value account and will operate under a master DVA managed by the respective bank.

According to the circular, the accounts can be used for foreign currency payments related to personal, medical and official travel, as well as expenses such as membership fees, IT services, visa fees and hotel bookings. Users will also be able to make limited online e-commerce payments through the DVA.

The facility will also be available against balances held in Retention Quota and Resident Foreign Currency Deposit (RFCD) accounts.

Bangladesh Bank said commercial banks must obtain prior approval from the central bank before introducing the service.

The initiative marks a significant step toward bringing digital payment channels into the formal financial system. Previously, banks were largely limited to processing inward remittances through online payment gateways.

Industry insiders believe the move could encourage global payment platforms such as PayPal and Stripe to enter the Bangladesh market, benefiting freelancers, e-commerce businesses and the country’s growing services trade sector.