Cambodia's Digital Currency Bakong Integrates with Alipay for Cross-Border Payments
Summary:
The digital currency bakong, operated by Cambodia's National Bank (NBC), has been integrated with Alipay's merchant network, facilitating transactions with 83 million worldwide merchants. The collaboration will also allow Chinese tourists with Alipay accounts to make purchases in Cambodia using bakong's QR code system, the KHQR. The bakong handled 35.4 million transactions worth $12 billion in the first half of 2023. Soramitsu, a Japanese blockchain firm, helped develop bakong's mobile app, and the payment system is now used in parts of Southeast Asia.
Cambodia's National Bank (NBC) has integrated its digital currency, bakong, with Alipay's merchant network under a recent memorandum of understanding (MoU) signed at the FinTech Expo in Singapore, according to local news outlets. Although the bakong runs on blockchain technology, it is not considered a central bank digital currency (CBDC). Instead, commercial banks are liable for the currency in use. The bakong supports transactions in both Cambodian riel and the United States dollar, thereby accommodating Cambodia's heavily dollarized economy. Through the MoU, Cambodians can utilize riel from their bakong digital wallets to transact with 83 million worldwide merchants on the Alipay platform. Also, Chinese tourists with Alipay accounts can now make purchases in Cambodia using Bakong's QR code system, KHQR. NBC's governor Chea Serey expressed confidence that the collaboration would boost merchant revenue and consequently stimulate economic progress. The bakong processed 35.4 million transactions valued at $12 billion during the first half of 2023, as reported by the Phnom Penh Post on November 17. Soramitsu, a Japanese blockchain company, jointly developed the bakong's mobile app. The digital payment system launched in 2020 focuses on facilitating remittances and purchases. In August, Soramitsu disclosed its strategy to leverage bakong for a cross-border payment system spanning India, China, and Japan. As it stands, bakong is actively used in Malaysia, Thailand, and Vietnam. Local vendors can tap into more than 80 million Alipay merchants through the Bakong's KHQR network. Furthermore, in July, the NBC forged an MoU with China's UnionPay International, enabling QR code-based cross-border payments.
Published At
11/20/2023 9:47:34 PM
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