This week, the National Bank of Cambodia (NBC) and Malaysian bank Maybank launched a mobile cross border remittance service. Users of Bakong – Cambodia’s payment system that uses a quasi central bank digital currency (CBDC) – can now receive funds of up to USD $2,500 from Maybank’s MAE app customers in Malaysia at a lower cost and in real-time.
When it comes to researching CBDCs, improving cross-border transactions is a key motivation for many central banks. This is because a large proportion of international remittances is made from people sending money back home.
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.
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