Malayan Banking Collaborates With Cambodia Central Bank On Blockchain Powered Payment System

Malayan Banking Bhd (Maybank) has entered into a MoU (memorandum of understanding) with the National Bank of Cambodia (NBC) on trans-border payments.

The largest bank in Malaysia, Maybank, will collaborate with the National Bank of Cambodia to foster cross-border payments.

With the MoU, Maybank Malaysia, NBC and Maybank Cambodia will study the feasibility of chaneling funds between Cambodia and Malaysia via NBC’s blockchain powered Bakong payment mechanism and Maybank’s Maybank2u electronic platform.

Chea Serey, the director-general of central banking at NBC and assistant governor, stated that the Bakong platform will improve the prevailing payment system at both national and regional tiers, stating:

“The MoU will enable both institutions to reach another level of financial cooperation in further leveraging the technology to benefit the people in Cambodia and Malaysia.”

Over 66% of all mobile banking deals in Malaysia were carried out via the Maybank App in 2018, while over 52% of all web based banking deals were carried out via Maybank’s electronic platform. NBC started trial of its Bakong mobile app in July 2019. At that time, NBC stated that the p2p payments app would assist the country’s unbanked populace and enhance financial participation.

In July, Philippines-based UnionBank completed a blockchain-powered remittances trial for funds transfer between the Philippines and Singapore. The trial was result of a collaboration between UnionBank and Singapore-headquartered OCBC Bank, wherein the bank utilized blockchain-powered tokenized fiat to transfer from OCBC to holder of an account at a rural Cantilan Bank.

Back in April, the US-based Western Union enterprise collaborated with Philippines headquartered e-wallet provider Coins.ph to permit Filipinos to carryout cross-border money remittance.