(MENAFN- CoinXposure)
The Japanese blockchain startup Soramitsu is exploring new applications for central bank digital currency (CBDC) with a new cross-border payment mechanism for Asian nations.
Soramitsu will implement Cambodia's CBDC and fiat-pegged stablecoins as part of its new payment system aimed at India, China, Japan, and Southeast Asian regions.
Nikkei reported on August 8 that the new initiative builds upon Soramitsu's CBDC expertise, including its participation in the Asian CBDC projects Bakong in Cambodia and Lao Kip.
Bakong is a public-private initiative launching in 2020 that enables Cambodian residents to pay at stores or transmit money via a mobile app using the local currency, riel, or U.S. dollar.
Since its introduction, Bakong has spread to countries such as Malaysia, thailand, and vietnam .
By the end of 2022, Bakong reportedly had 8.5 million users and processed approximately $15 billion in transactions.
“The company is working to enable similar cross-border payments for India, China, and Laos and hopes to bring Japan into this network,” the most recent report states.
As part of the project, Soramitsu plans to establish a Japanese exchange for stablecoins, which would enable the conversion of currencies from various countries, according to a report, which adds:
One of the features of Soramitsu's planned payment network is a reduction in anticipated transaction fees.
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According to the company, implementing stablecoins, which can be transmitted without using existing interbank payment networks, would enable the fee reduction.
Soramitsu formed a team with the tokyo-based digital services company Vivit and the Tama University Center for Rule-making Strategies to construct the cross-border payment network.
It seeks partnerships with large e-commerce sites.
Additionally, the company collaborates with Mitsubishi UFJ Trust and Banking and other partners to develop the required exchange infrastructure .