As the global economy undergoes geopolitical shifts, emerging market economies across the Global Majority are systematically restructuring their financial architecture to achieve monetary and digital sovereignty.
Within regional blocs like ASEAN and multilateral platforms like BRICS+, the convergence of digital payment infrastructure and sovereign data governance is laying the groundwork for a multipolar digital trade ecosystem designed by and for emerging economies.
A landmark example of this shift is taking shape in Southeast Asia. Speaking at a trade event in Jakarta, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted that the implementation of the ASEAN Digital Economy Framework Agreement (DEFA) could double the region’s digital market from US$1 trillion to US$2 trillion. Indonesia alone – Southeast Asia’s largest economy – expects its digital economy to reach US$600 billion under the pact.
While DEFA targets massive economic growth ahead of its planned signing in Manila in late 2026, its true significance lies in how it operationalises digital sovereignty for developing nations.
Rather than relying on traditional clearinghouses or foreign reserve currencies, DEFA prioritises direct cross-border interoperability among national payment rails. Indonesia’s Quick Response Code Indonesian Standard (QRIS) – which is actively expanding across ASEAN – demonstrates how localised networks eliminate transaction friction.
“Using QRIS provides an advantage because there is no merchant discount cost… making it easier for small businesses to transact across borders,” Minister Airlangga emphasised, highlighting how zero-fee digital payment rails empower micro, small, and medium enterprises (MSMEs) to trade internationally.
Strategic autonomy: balancing sovereignty and regional trade
Digital sovereignty within ASEAN is defined by “strategic autonomy” – a doctrine allowing individual states to safeguard their domestic financial and data ecosystems while fully participating in regional commerce. DEFA reconciles these priorities across two key pillars:
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Data sovereignty vs. cross-border flows: Member states such as Indonesia maintain strict data localisation laws for national security, while regional trade requires fluid information exchange. DEFA serves as a bridging legal framework, establishing common baseline cybersecurity and privacy standards without overriding national laws.
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Monetary autonomy: By anchoring digital payment linkages directly to Local Currency Settlement (LCS) frameworks, DEFA reduces reliance on third-party reserve currencies, protecting local economies from foreign exchange volatility.
Structural challenges on the path to integration
Despite its promise, constructing a sovereign, multi-nation digital ecosystem requires navigating deep structural tensions:
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Developmental asymmetry: Member states operate at vastly different tiers of digital maturity – ranging from Singapore’s advanced wholesale CBDC initiatives to Cambodia’s blockchain-based Bakong system and developing infrastructure in Lao PDR. Standardising regional rules requires flexible compliance timelines.
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Privacy vs. oversight: Regulatory frameworks must balance national security requirements for transaction traceability with the market demand for user privacy and frictionless processing.
Building the multipolar digital economy
The alignment between ASEAN’s digital push and the broader BRICS+ vision is clear. By establishing self-determined trade corridors, sovereign data standards, and resilient payment rails, emerging nations are ensuring that the future of global digital trade is shaped directly by the Global South.
The article was prepared by Duane Dizon and Alexander Titov.