Cambodia’s digital currency Bakong amps use case with Alipay agreement
Bakong, a digital currency managed by the National Bank of Cambodia (NBC), will allow users to access Alipay's merchant network and enable cross-border transactions on Alipay+ using QR codes under a Memorandum of Understanding (MoU) signed by the fintech. Expo in Singapore as reported by the local press.
The Bakong service at NBC is powered by blockchain, but it is not a central bank digital currency (CBDC) as the currency is a liability of the commercial banks that use it. Bakong accepts both United States Dollar and Cambodian Riel accounts. Cambodia's economy is heavily dollar-denominated.
The MoU means Cambodians will be able to use the Bakong Wallet Rail to shop with 83 million merchants worldwide through the Alipay network. In addition, Chinese tourists who have an account with China's giant Alipay electronic payment system can make purchases in Cambodia using the bakong KHQR system's QR code. NBC Governor Chea Cerey said:
“The ease of making payments provides merchants with an increase in revenue, which helps to stimulate economic activity. I am sure that this cooperation with Alipay+ will be beneficial for all parties.”
In the year In the first half of 2023, there were 35.4 million transactions worth $12 billion using Bakong, the Phnom Penh Post reported on November 17.
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Bakong Payment was launched in 2020 and is designed to send remittances. The mobile application was developed in collaboration with Japan's Soramitsu Blockchain. In August, Soramitsu announced plans to use Bakong to develop a cross-border payment system involving India, China and Japan. Bakong is already used in Malaysia, Thailand and Vietnam.
Local vendors can now use the KHQR network, part of the National Bank of Cambodia's Bakong System, to make payments to more than 80 million Alipay merchants worldwide.https://t.co/hLagrXU08X
— Phnom Penh Post (@phnompenhpost) November 17, 2023
In July, NBC signed a memorandum of understanding with China UnionPay International on the use of QR codes for cross-border payments.
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