Bakong Will Connect To Alipay Network And Allow Cross-Border Transactions

JAKARTA - Bakong, a digital currency operated by the National Bank of Cambodia (NBC), will provide user access to the Alipay network and allow cross-border transactions on Alipay+ using the QR code under a memorandum of understanding (MoU) signed at the FinTech Expo in Singapore.

The Bakong service is operated by NBC on the blockchain, but is not a central bank digital currency (CBDC), because it is the obligation of commercial banks to use it. Bakong allows United States dollars and Cambodian riel accounts. Cambodia's economy is indeed very well-dominated.

The MoU means Cambodians can use riel from their back wallet to shop with 83 million traders worldwide on the Alipay network. In addition, Chinese tourists who have accounts with large Chinese Alipay electronic payment systems will be able to shop in Cambodia using the QR code from the KHQR bawang system.

The simplicity in making payments provides an increase in income for traders, helping stimulate economic activity. I believe this collaboration with Alipay+ will benefit all parties," said NBC Governor Chea Serey.

There were 35.4 million transactions worth 12 billion US dollars (Rp186.1 trillion) using bakong in the first half of 2023, Phnom Penh Post reported on November 17.

Bakong services were launched in 2020 and designed for remittances and purchases. Its mobile application was developed in collaboration with Japan's Soramitsu blockchain. In August, Soramitsu announced plans to use a shell to develop a cross-border payment system that includes India, China, and Japan. Bakong is already in use in Malaysia, Thailand, and Vietnam.

In July, NBC signed an MoU with UnionPay International China on the use of QR codes for cross-border payments.