Bakong, a digital currency managed by the National Bank of Cambodia (NBC), is now available as a payment option on the Alipay merchant network. Earlier in July, it became accessible to UnionPay users.
During the Singapore FinTech Festival, a memorandum of understanding (MoU) was signed between the NBC and the Alipay payment system. According to the agreement, the Bakong digital currency will become available on the Alipay merchant network. This is reported by The Phnom Penh Post.
Bakong is powered by a private blockchain network operated by the NBC and is similar to a CBDC but represents the liabilities of commercial banks in Cambodia rather than the central bank. It’s denominated in Cambodian riels and U.S. dollars since the local economy is heavily dollarized.
The partnership with Alipay will allow Bakong to be used for purchases from 83 million merchants worldwide. Chinese tourists who have Alipay accounts will also be able to pay for purchases in Cambodia using QR codes of Bakong’s KHQR system.
In July, the NBC representatives signed a similar agreement with the payment system UnionPay, which, as of the beginning of 2023, was used by over 22 million merchants all over the world.
According to The Phnom Penh Post, 35.4 million transactions worth $12 billion were made using Bakong during H1 2023. Bakong was launched in 2020 with the participation of FinTech company Soramitsu. In August, it was reported that Soramitsu was developing a cross-border blockchain payment system based on Bakong that would potentially unite the economic space of Japan, India, China, and Southeast Asian countries.
