National Bank of Cambodia is testing digital wallets to reduce cross border payments fee – Blockchain News

The National Bank of Cambodia is testing digital wallets to lower the cost of cross border payments. Earlier, the bank signed an agreement with Malaysia's Maybank to work on a digital payment network. Cambodia's chief central banker H.E. Chea Serey informed that remittance fees can range as high as 30%.

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The National Bank of Cambodia (NBC) is testing its digital wallet, the Hyperledger Iroha-powered Bakong. The bank wants to lower the cost of cross border settlements. Khmertimeskh reported that the new system would facilitate money transfers and payments while enhancing financial inclusion in the country.

The Central Bank said in a statement that the Bakong system is a peer-to-peer fund transfer service available to retail customers of participating banks in Cambodia. The bank further added that they aim to offer banking services to the unbanked, especially in rural areas.

Earlier, the central banks of Thailand and Cambodia signed a memorandum of understanding (MoU) to create a payment system based on QR codes. The banks look to facilitate cross-border exchanges in local currencies. Currently, Bakong is accepting users from eight different Cambodian banks, including ACLEDA Bank, which is the largest bank of the country.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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