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Cambodian digital foreign money bakong amps up use case with Alipay settlement

20 Nov 2023
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The bakong, a digital foreign money operated by the Nationwide Financial institution of Cambodia (NBC), will present customers with entry to the Alipay service provider community and allow cross-border transactions on Alipay+ utilizing QR codes beneath a memorandum of understanding (MoU) signed on the FinTech Expo in Singapore, the native press reported.

The bakong service operates by the NBC on a blockchain, however it’s not a central financial institution digital foreign money (CBDC), because the foreign money is a legal responsibility of the business banks that use it. The bakong permits each United States greenback and Cambodian riel accounts. The Cambodian financial system is closely dollarized.

The MoU implies that Cambodians will have the ability to use riel from their bakong wallets to buy with 83 million retailers worldwide on the Alipay community. As well as, Chinese language vacationers who’ve accounts with China’s large Alipay digital fee system will have the ability to store in Cambodia utilizing the QR codes of the bakong KHQR system. NBC governor Chea Serey stated:

“The simplicity of creating funds offers retailers with a income increase, serving to to stimulate financial exercise. I’m assured this collaboration with Alipay+ might be helpful for all events.”

There have been 35.4 million transactions price $12 billion utilizing the bakong within the first half of 2023, the Phnom Penh Submit reported on Nov. 17.

Associated: Lao CBDC proof-of-concept project to launch using system pioneered in Cambodia

The bakong fee was launched in 2020 and was designed for sending remittances an making purchases. Its cell app was developed in collaboration with Japan’s Soramitsu blockchain. In August, Soramitsu introduced plans to make use of the bakong to develop a cross-border fee system encompassing India, China and Japan. The bakong is already utilized in Malaysia, Thailand and Vietnam.

In July, the NBC signed a MoU with China’s UnionPay Worldwide on the usage of QR codes for cross-border funds.

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