Japanese blockchain startup Soramitsu is considering the application of a new central bank digital currency (CBDC) in a new project on cross-border payment systems for Asian countries.
Soramitsu plans to introduce Cambodian CBDC and fiat-pegged stablecoins as part of a new payment system targeting regions such as India, China, Japan and Southeast Asia.
The new projects are building on Soramitsu’s CBDC expertise, including its involvement in Asian CBDC projects Bakong in Cambodia and Lao Skip in Laos. report August 8th.
Launched in 2020, Cambodian Bakong is a public-private initiative that allows Cambodian citizens to pay in stores or send money through mobile apps using the local currency Riel or US Dollars. Since its launch, Bakong’s adoption has expanded to countries such as Malaysia, Thailand and Vietnam. By late 2022, Bakong reportedly had 8.5 million users and processed about $15 billion in payments.
“The company is working to enable similar cross-border payments in India, China and Laos, and wants Japan to join the network,” the latest report said. .
As part of the project, Soramitsu plans to set up a Japanese exchange for stablecoins, which will allow the exchange of currencies of various countries, the report said, adding:
“For example, if a Thai consumer wants to make a QR code-based payment to buy something from a Japanese e-commerce site, the payment will be sent to the exchange as a dollar-denominated bakong and converted to yen-denominated. ” stablecoin. “
One of the features of Soramitsu’s planned payment network is the expected reduction in transaction fees. According to the company, the introduction of stablecoins, which allow remittances without going through existing interbank payment networks, will reduce fees.
Related: India Negotiates Cross-Border CBDC Payments With Global Central Banks
To build a cross-border payment network, Soramitsu teamed up with Tokyo-based digital services company Vibit and Tama University’s Center for Rule-making Strategy. We are also considering partnerships with major e-commerce sites.
The company is also working with Mitsubishi UFJ Trust and Banking in Japan and other partners to build the necessary exchange infrastructure.
Soramitsu did not immediately respond to Cointelegraph’s request for comment. This article will be updated until new information becomes available.
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