The bakong, a digital currency operated by the National Bank of Cambodia (NBC), will present customers with entry to the Alipay service provider community and allow cross-border transactions on Alipay+ utilizing QR codes underneath a memorandum of understanding (MoU) signed on the FinTech Expo in Singapore, the native press reported.
The bakong service is operated by the NBC on a blockchain, however it’s not a central financial institution digital currency (CBDC), because the currency is a legal responsibility of the business banks that use it. The bakong allows each United States greenback and Cambodian riel accounts. The Cambodian economic system is closely dollarized.
The MoU implies that Cambodians can use riel from their bakong wallets to buy with 83 million retailers worldwide on the Alipay community. In addition, Chinese vacationers who’ve accounts with China’s huge 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 making payments provides merchants with a revenue boost, helping to stimulate economic activity. I’m confident this collaboration with Alipay+ will be beneficial for all parties.”
There had been 35.4 million transactions value $12 billion utilizing the bakong within the first half of 2023, the Phnom Penh Post reported on Nov. 17.
The bakong service was launched in 2020 and was designed for sending remittances and making purchases. Its cellular app was developed in collaboration with Japan’s Soramitsu blockchain. In August, Soramitsu introduced plans to use the bakong to develop a cross-border fee system encompassing India, China and Japan. The bakong is already utilized in Malaysia, Thailand and Vietnam.
Local distributors can now use the KHQR community of the Bakong system, part of the National Bank of Cambodia (NBC), to make funds to over 80 million Alipay retailers globally.https://t.co/hLagrXU08X
— The Phnom Penh Post (@phnompenhpost) November 17, 2023
In July, the NBC signed a MoU with China’s UnionPay International on the use of QR codes for cross-border funds.