The Central Bank of Cambodia is now testing a wallet on digital ledger technology, DLT for cross border payments.
The bank aims to move towards the reduction of the cost of payments made across borders. They are now considering the extent to which their virtual wallet, the Bakong might be of use.
Generated by the Hyperledger Iroha, Bakong itself was initiated during July of this year, now accepting a user interface from over 8 separate banks, along with the country’s largest commercial bank with an asset range of over five billion dollars ($5B) namely, ACLEDA.
Need to implement DLT for cross border payments in Cambodia
Cambodia’s National Bank and Malaysia’s Maybank have come together to endorse the agreement through signed documentation, and thus Bakong and Maybank2u joined hands.
Similarly, also in the last week, the two discuss how their respective cryptocurrency channels could come together, thereby reducing the rather debilitating remittances.
The linkage allows for a much larger user interface. A representative for the biggest operating bank in the nation, Maybank indicated that fifty-two percent (52%) of all web-banking proceedings went through their crypto-platform.
For the inhabitants of both these countries, any developments made in favor of the cause would be gladly received.
Even though they are partitioned by the presence of Thailand, it was reported by Mr. H.E Chea Serey (Chief) in his interview with the Khmer Times that remittances can often increase up to thirty percent.
He further stated that the establishment of such an institution that leans towards the provision of limitless possibilities in terms of the enhancement of the payment system extending to both territorial and domiciliary levels.
The head of Community Financial Services at Maybank also mentioned that he was looking towards this agreement rather optimistically as it allows a rather opportune and economical medium for the transfer of funds between countries.