Cambodia and Laos launch cross-border QR code payments
The National Bank of Cambodia (NBC) and Bank of the LAO PDR (BOL) have launched the first phase of cross-border QR code payments in Laos. It will allow Cambodians who have bank accounts in their local currency (Riel) to use a mobile banking app to make payments by scanning LAO QR Code with merchants in Laos. In the second phase Laotians who have bank accounts in their local currency (Kip) will be able to make mobile banking app payments by scanning KHQR codes with merchants in Cambodia. Cambodia already has cross-border QR code-based payment deal with Thailand. [Read more at the NBC]
Vietnam joins Southeast Asian effort on cross-border payments
State Bank of Vietnam (SBV) signed an agreement to be part of an initiative by five other Southeast Asian countries to connect their payments systems and establish a cross-border QR-based retail payments network. This is an expansion of the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC) that was initiated at the sidelines of the G20 Leaders’ Summit on 14 November 2022 in Bali between Indonesia, Malaysia, Philippines, Singapore, and Thailand. The new agreement was signed at the 10th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) on August 25, 2023. [Read more at Bank Negara Malaysia]
Malaysia, Indonesia and Thailand to extend use of local currencies for bilateral transactions
Bank Negara Malaysia (BNM) announced that it, Bank Indonesia (BI) and Bank of Thailand (BOT) have concluded the signing of three bilateral memoranda of understanding (MOUs) that are the Framework for Cooperation to Promote Bilateral Transactions in Local Currencies between Malaysia, Indonesia and Thailand. The three central banks are committed to strengthening cooperation in the use of local currencies for bilateral transactions. The scope of the framework is now expanded to include more eligible cross-border transactions beyond trade and direct investment which would be implemented gradually. [Read more at Bank Negara Malaysia]
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s central bank digital currency monthly monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.
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