NBC plans to promote riel with single KHQR
NBC plans to promote riel with single KHQR
The National Bank of Cambodia (NBC) is working to enable QR code scanning on both riel and US dollar currencies using a common single KHQR code, a move aimed at promoting the use of riel.
This move also aims to simplify digital transactions and facilitate foreign tourists to make digital payments using riel in Cambodia.
Currently, there are choices for customers to make digital transactions by scanning one KHQR code for Khmer Riel transactions and another one for USD transactions.
The central bank has worked on the new initiative since March this year and formally asked local banks and microfinance institutions (MFIs) to inform their customers, both individual customers and merchants, to create bank accounts in KHR also if they have only US dollar accounts.
Once this is implemented, digital payment transactions can only be made by scanning a uniform KHQR code – which is currently separated into two – KHR KHQR Code and US dollar KHQR Code, said NBC Governor Chea Serey on Tuesday.
Banked individuals and merchants are required to have accounts in riel for making payments and receiving transactions, so that once the implementation is effective, those who have accounts in both currencies will be able to make digital transactions via scanning KHQR code, she added.
Those who have accounts in only the US dollar will not be able to make payments using KHQR, she said.
This is aimed at promoting the use of Khmer Riel, making riel usage more convenient, and also facilitating foreign tourists in Cambodia to make payments via the Bakong system, by directly scanning only one KHQR code for both KHR and US dollar transactions, Serey said.
“The innovative approach will reduce complexities in digital payments, allowing individuals and businesses to make payments more easily and conveniently by simply scanning a common QR code for both KHR and US dollar transactions,” she told reporters.
Additionally, Cambodians with bank accounts in both currencies are able to make digital payment transactions with merchants while abroad under the cross-border payment system agreements that NBC has made. Those having only US dollar accounts will not be able to make digital payments by scanning merchant QR codes in those countries.
NBC will work with banks and MFIs in informing people properly on the move and raising awareness on the importance of using KHR accounts in bank mobile apps, the Governor said.
KHQR code is a universal quick response (QR) code system created for retail payments in Cambodia.
Cambodia has successfully launched bilateral cross-border QR code payment cooperation with five countries namely Thailand, Vietnam, Laos, China and South Korea.
Expanding the scope of the payment is to promote the use of the riel as well as the currency of the partner country without having to go through the US dollar exchanges.
Launched in October 2020, Bakong allows Cambodians to transfer and receive digital funds using their smartphones without traditional bank accounts.
The central bank is also expanding this cross-border payment scheme with other countries in the region and partners such as Japan, India, Singapore and Malaysia.
The number of Khmer Riel transactions in the Bakong payment system reached 75.5 million with a total transacted amount of 64.9 trillion riel at the end of the first semester this year, an NBC report showed.
The transactions in the US dollar reached 99.8 million with a total transacted amount of $38.8 billion, added the report.
