Recent meetings between Maldivian officials and U.S. representatives, including the U.S. Ambassador, highlight a troubling gap between acknowledging the need for e-commerce integration and actual implementation. Minister of Economic Development and Trade Mohamed Saeed confirmed ongoing discussions about expanding e-commerce access, aligning with President Dr. Mohamed Muizzu’s goals. However, the Maldives still lacks essential reforms, such as a Digital Transaction Act and updated Financial Transaction Acts, crucial for platforms like PayPal.
Despite high internet penetration, the country’s technological infrastructure needs significant upgrades to support seamless digital transactions. The government’s incremental progress and focus on short-term fixes undermine efforts to develop a robust national payment system. PayPal’s preference for larger markets and challenges in linking local bank cards further complicate matters.
To address these issues, the Maldives must:
- Implement legislative reforms for digital transactions.
- Develop a national payment system and upgrade technology.
- Engage effectively with U.S. officials and e-commerce platforms.
- Improve local bank integration with international payment systems.
Minister Saeed’s U.S. visit, while aimed at strengthening economic ties, underscores the need for concrete actions beyond discussions to fully benefit from global e-commerce services and support the digital economy.
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