Cambodia’s Bakong Digital Currency to Partner with Alipay+ for Cross-Border Transactions
The National Bank of Cambodia (NBC) has signed a memorandum of understanding (MoU) with Alipay at the FinTech Expo in Singapore. The MoU will allow users of the bakong, Cambodia’s digital currency, to access the Alipay merchant network and conduct cross-border transactions using QR codes. This partnership will open up opportunities for Cambodians to use their bakong wallets to shop with 83 million merchants globally on the Alipay network. It will also enable Chinese tourists with Alipay accounts to make purchases in Cambodia using the bakong KHQR system.
What is Bakong?
The bakong is a digital currency operated by the NBC on a blockchain. It is important to note that it is not a central bank digital currency (CBDC) as it is a liability of the commercial banks that use it. The bakong allows for both United States dollar and Cambodian riel accounts, making it a versatile and accessible digital payment solution.
Benefits of the Partnership
NBC governor Chea Serey highlighted the benefits of the collaboration, emphasizing the simplicity of making payments for merchants and the potential boost to economic activity. This partnership is expected to stimulate economic growth and provide a seamless payment experience for users. The bakong has already seen significant usage, with 35.4 million transactions worth $12 billion in the first half of 2023, demonstrating its growing popularity and adoption.
Hot Take: The Future of Digital Payments in Cambodia
The partnership between the bakong and Alipay represents a significant step towards seamless digital payments and cross-border transactions in Cambodia. As the digital currency continues to gain traction and usage, it is poised to fuel economic activity and enhance the overall payment infrastructure in the country. This collaboration sets the stage for further innovation in the digital payments space and reinforces Cambodia’s position as a fintech leader in the region.
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