Phnom Penh:The National Bank of Cambodia and the Royal Monetary Authority of Bhutan have signed a Memorandum of Understanding to create a framework for bilateral cooperation, aiming to integrate cross-border payment systems between the two countries.

According to Agence Kampuchea Presse, the strategic agreement was signed on October 5 in Bhutan by H.E. Dr. Chea Serey, Governor of the National Bank of Cambodia, and H.E. Ms. Yangchen Tshogyel, Governor of the Royal Monetary Authority of Bhutan, following detailed discussions on central banking operations and financial technology sharing.

Dr. Chea Serey expressed optimism about the collaboration, stating that the two central banks shared experiences and lessons learned, and they hope to begin their cross-border payment cooperation soon.

The agreement is part of the National Bank of Cambodia's ongoing initiative to expand its Bakong system, a blockchain-based national payment platform launched in 2020. Bakong facilitates instant digital transactions using QR codes and local currency (Riel) or US dollars.

Bakong is designed to enhance financial inclusion and reduce dependency on physical cash. It has already established cross-border payment linkages with Thailand, Vietnam, Laos, and Malaysia, enabling seamless remittance and tourism payments across Southeast Asia.