National Bank of Cambodia exploring Digital assets for cross border payments

Debarati Ghosh by Debarati Ghosh - 06:31 AM Oct 18, 2019

Cambodia’s central bank, National Bank of Cambodia (NBC) is exploring digital ways to ease the cross-border payments. They are mainly working to cut down the cost of international payments. To fulfill this idea, their mobile payment application system Bakong can be extremely useful.

Cross-Border Partnership

Last week NBC signed a Memorandum of Understanding (MoU) with Maybank of Malaysia. The agreement between the two parties was mainly to explore possibilities to enable real-time transactions. In that case, Maybank2u and Bakong can go hand in hand to reduce the high settlement fees.

Any breakthrough will help the residents of these two countries. According to Cambodia’s Assistant Governor and Director General Chea Serey, these cross border fees can go up to 30%. However, this new partnership between the two banks can change that.

Bigger Customer Base

The partnership of Bakong and Maybank2u can capture a larger customer base. And this collaboration will also contribute to promoting trade activities and financial inclusion for both the nations. Maybank is the largest bank in Malaysia and reportedly 52% of the Malaysian online transaction went through Maybank2u.

Previously while signing the MoU,  Chea Serey also stated, “The introduction of Bakong system will provide more possibilities in enhancing payment system at both domestic and regional level and the signed MOU will enable both institutions to reach another level of financial cooperation in further leveraging the technology to benefit the people in Cambodia and Malaysia,”

Datuk Hamirullah Boorhan, Head of Community Financial Services, Maybank said, “We look forward to providing our customers in Malaysia and Cambodia with a convenient yet cost-effective solution for inter-country funds transfer,”.

Bakong was launched in July as a mobile payment application system. It currently accepts users from 8 various Cambodian Banks. The largest commercial bank in Cambodia, ACLEDA Bank also includes in that list.

As the trend says, many banks all over the world are looking and working to create digital assets on their own. Any digital asset backed by Government Banks or Central Banks is surely more reliable to the customers. This will not only create a more secure digitalized future in the industry but consumers will also come forward to use more digital assets and wallets than physical transactions.

About The Author
Debarati Ghosh

Debarati GhoshDebarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.