In a move to enhance cross-border payments, Cambodia’s Bakong digital currency system, a component of the National Bank of Cambodia (NBC), has entered into a memorandum of understanding (MoU) with Chinese payment provider Alipay, Cambodia’s Phnom Penh Post recently reported.
Following the signing of the MoU, Cambodian vendors utilizing QR codes from the so-called KHQR network of the Bakong system can make payments to over 80 million Alipay merchants globally, contributing to the expansion of cross-border payments between Cambodia and China.
At the same time, Chinese visitors to Cambodia who use Alipay can shop in the country by scanning QR codes from the Bakong system at participating merchants.
Local vendors can now use the KHQR network of the Bakong system, a part of the National Bank of Cambodia (NBC), to make payments to over 80 million Alipay merchants globally.https://t.co/hLagrXU08X
— The Phnom Penh Post (@phnompenhpost) November 17, 2023
The MoU, signed at the FinTech Expo in Singapore, aims to promote efficient and secure cross-border payment transactions via QR codes between the KHQR network and Alipay+.
The Bakong system is built on a blockchain, but is not a traditional central bank digital currency (CBDC) given that the circulating tokens are a liability of commercial banks and not the central bank.
Chea Serey, governor of the NBC, emphasized the significance of the collaboration, especially as Cambodia becomes increasingly popular among Chinese and international tourists.
The partnership facilitates payments in both the local currency, riel (KHR), and the US dollar (USD).
Douglas Feagin, senior vice president of Ant Group and head of Alipay+, expressed gratitude for the partnership, noting that it enhances theRead more on cryptonews.com