17/08/2023 (Japan/ Cambodia) - Japanese fintech firm Soramitsu had joined an initiative to develop a cross-border payment system involving Cambodia's digital currency, Bakong, which was launched by the National Bank of Cambodia (NBC) in October 2020. The system aimed to strengthen the Khmer riel and reduce dependence on the US dollar. NBC had collaborated with Soramitsu to create the Bakong system, using the Hyperledger Iroha blockchain framework.
Bakong had already facilitated QR code-based digital payments between Cambodia and Malaysia, Thailand, and Vietnam, with around 8.5 million users and handling approximately $15 billion in payments by the previous year's end.
At the 2023 World Economic Forum in Davos, Makoto Takemiya, Co-founder, and CEO of Soramitsu, highlighted the flexibility of blockchain in digital asset management. This enabled NBC and Soramitsu to implement fiat-backed digital representations of the Khmer riel and US dollar, usable for both wholesale interbank transactions and everyday retail payments.
Reports indicated Soramitsu's efforts to expand similar cross-border payment systems to India, China, and Laos, with the aim of eventually including Japan. The company had already assisted the Laos Central Bank in developing Digital Lao Kip.
Nikkei Asia reported Soramitsu's plan to establish a Japanese exchange for stablecoins, cryptocurrencies pegged to legal tender. This would facilitate cross-border payments with lower transaction fees compared to traditional methods.
Japanese Prime Minister Fumio Kishida praised Bakong at the 'Nikkei 28th Future of Asia Forum,' commending the National Bank of Cambodia and Soramitsu for their innovative efforts. Bakong's success showcased Cambodia's strides in digitalization. As the nation embraced the Fourth Industrial Revolution, it became a pioneer in digital financial services in the region.