Session-07 of the Bangladesh Innovation Summit 2026 evaluated the strategic transition of Bangladesh from a cash-dominated society into an inclusive, interoperable, digital-first economy. Despite possessing over 200 million Mobile Financial Services (MFS) accounts and an increasingly adaptable youth demographic, physical cash continues to account for 72% of all financial transactions nationwide. The keynote address and panel discussions centered on resolving early-stage and growth-stage startup venture capital bottlenecks, expanding cross-border payment rails for freelancers and micro, small, and medium enterprises (MSMEs), deploying open Digital Public Infrastructure (DPI), ensuring ecosystem-wide unit economic sustainability, and shifting the role of the state from rigid regulation toward proactive facilitation.

Mr. Waiz Rahim: Emphasized that venture capital operates on a high-risk portfolio model where ~65% of startups fail globally, balanced by power-law returns from breakout winners. He highlighted that while Bangladesh’s macroeconomy nears $500 billion, local startups secured only $1.1 billion over the last decade, with 99% of that capital originating from foreign venture funds. He underscored that BSIC was structured under central bank policy to mobilize domestic bank capital alongside foreign investors, specifically targeting the $5M–$15M Series A and Series B funding void.

Mr. Syed Mahbubur Rahman: Noted that while consumer surveys reveal convenience (over direct cost) as the primary motivator for digital payment adoption, top-down policy mandates alone cannot build a cashless state. He stated that sustainable transition requires fair unit economics across the entire payments value chain—including issuing banks, acquirers, PSPs, and network switches—to cover onboarding, tech maintenance, reconciliation, and fraud monitoring costs. Without adequate margins, financial institutions will merely compete over existing accounts rather than acquiring new micro-merchants.

Mr. Rashed Mahmud: Identified the absence of low-value, high-frequency international payment rails as a primary operational barrier for local tech startups, digital service providers, and freelancers. He argued that current cross-border frameworks only cater to large-ticket corporate imports. He proposed establishing a middleware compliance and aggregation gateway to automate foreign exchange declarations, AML checks, and e-KYC, enabling small entrepreneurs to access digital tools and receive offshore remittances seamlessly.

Mr. Asoke Biswas: stated that a sustainable transition requires a synchronized approach combining open interoperability, targeted subsidies, and the digitization of government payments (P2G/G2P). Drawing from recent baseline assessments across 10,000+ Union and Municipal Digital Centers, he highlighted persistent trust deficits, digital illiteracy, and fear of formal tax scrutiny among rural cottage entrepreneurs, urging that Digital Centers be converted into decentralized economic fintech hubs.

Mr. Azimuddin Biswas: Reaffirmed the government’s commitment to facilitating an innovation-driven, creative economy. He explained that physical cash imposes a heavy macroeconomic toll through note printing, armored transport, storage, and sorting, justifying initial state-backed transaction subsidies. He noted that the Ministry of Finance is actively auditing legacy regulatory frameworks to eliminate redundant procedural hurdles for technology enterprises.