Cambodia, Malaysia launch cross-border digital money transfers

The National Bank of Cambodia and Malaysian banking group Malayan Banking, or Maybank, launched a new mobile cross border remittance service using Cambodia’s recently introduced central bank-backed digital currency Bakong in a very first for Southeast Asia, if not the world.

Users of the mobile Bakong banking app in Cambodia can now receive funds worth up to $2,500 at a time from Maybank’s banking app MAE at lower costs than traditional transactions and in real-time, according to Cambodia’s central bank.

The service is mainly targeted at Cambodian migrant workers in Malaysia, who are welcoming a low-cost and easy-to-use remittance service, the National Bank of Cambodia said.

Easy-to-use and cheaper way to transfer money for migrant workers

Technically, the new Maybank-Bakong cooperation allows Maybank banking clients to directly send money to e-wallets powered by the Cambodian central bank’s blockchain technology via the MAE mobile banking application.

At the moment, the app is converting the Malaysian ringgit to US dollars to be sent to Cambodia, but it will also work on adding the Cambodian domestic currency, the riel.

The cooperation could be inspiring for other central banks, analysts say, particularly for countries with a large portion of migrant workers.

In 2020, the total value of remittances across the world totaled $702 billion, of which $540 billion was to low and middle-income countries, according to figures from the World Bank.

Yet despite the high demand, traditional remittances are typically slow and expensive, depending on the region, provider or type of service. And those who resort to using individual cryptocurrency wallets for international transactions on their own usually have solid technological knowledge, but are also exposed to the risk of market price fluctuation of digital money.

Just mobile phone number needed for transfers

A digital solution like the Bakong could make it much easier. The Maybank-Bakong cross-border transfer service eliminates the need for bank accounts, using just the mobile phone numbers of recipients registered with the Bakong e-wallet.

Among other adopters of the system is South Korea’s central bank which said it will also be advancing its cross-border cryptocurrency trials with participation from Samsung and develop solutions for cross-border crypto payments to other mobile phones or connected bank accounts. Additionally, the Bank of Ghana announced it will start a pilot trial for its central bank-backed digital money called e-Cedi.



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The National Bank of Cambodia and Malaysian banking group Malayan Banking, or Maybank, launched a new mobile cross border remittance service using Cambodia’s recently introduced central bank-backed digital currency Bakong in a very first for Southeast Asia, if not the world. Users of the mobile Bakong banking app in Cambodia can now receive funds worth up to $2,500 at a time from Maybank’s banking app MAE at lower costs than traditional transactions and in real-time, according to Cambodia’s central bank. The service is mainly targeted at Cambodian migrant workers in Malaysia, who are welcoming a low-cost and easy-to-use remittance service,...

The National Bank of Cambodia and Malaysian banking group Malayan Banking, or Maybank, launched a new mobile cross border remittance service using Cambodia’s recently introduced central bank-backed digital currency Bakong in a very first for Southeast Asia, if not the world.

Users of the mobile Bakong banking app in Cambodia can now receive funds worth up to $2,500 at a time from Maybank’s banking app MAE at lower costs than traditional transactions and in real-time, according to Cambodia’s central bank.

The service is mainly targeted at Cambodian migrant workers in Malaysia, who are welcoming a low-cost and easy-to-use remittance service, the National Bank of Cambodia said.

Easy-to-use and cheaper way to transfer money for migrant workers

Technically, the new Maybank-Bakong cooperation allows Maybank banking clients to directly send money to e-wallets powered by the Cambodian central bank’s blockchain technology via the MAE mobile banking application.

At the moment, the app is converting the Malaysian ringgit to US dollars to be sent to Cambodia, but it will also work on adding the Cambodian domestic currency, the riel.

The cooperation could be inspiring for other central banks, analysts say, particularly for countries with a large portion of migrant workers.

In 2020, the total value of remittances across the world totaled $702 billion, of which $540 billion was to low and middle-income countries, according to figures from the World Bank.

Yet despite the high demand, traditional remittances are typically slow and expensive, depending on the region, provider or type of service. And those who resort to using individual cryptocurrency wallets for international transactions on their own usually have solid technological knowledge, but are also exposed to the risk of market price fluctuation of digital money.

Just mobile phone number needed for transfers

A digital solution like the Bakong could make it much easier. The Maybank-Bakong cross-border transfer service eliminates the need for bank accounts, using just the mobile phone numbers of recipients registered with the Bakong e-wallet.

Among other adopters of the system is South Korea’s central bank which said it will also be advancing its cross-border cryptocurrency trials with participation from Samsung and develop solutions for cross-border crypto payments to other mobile phones or connected bank accounts. Additionally, the Bank of Ghana announced it will start a pilot trial for its central bank-backed digital money called e-Cedi.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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