Using CBDCs from Cambodia, Soramitsu is creating a cross-border payment system with a focus on Southeast Asia, Japan, India, and China.
The Japanese blockchain firm Soramitsu is embarking on a ground-breaking experiment that might change the landscape of central bank digital currency (CBDC) applications in a bold move to alter cross-border payments. The initiative, which is centered on a cross-border payment system for Asian nations, has the power to completely alter how countries conduct financial operations.
In Soramitsu’s bold idea, a new payment system is created by combining the CBDC of Cambodia and fiat-pegged stablecoins. This ground-breaking approach is intended for dynamic Southeast Asian nations as well as nations like China, Japan, and India. This project continues the startup’s history of ground-breaking innovations by building on Soramitsu’s well-known competence in the field of CBDCs.
The foundation for this project was laid by Soramitsu’s participation in Bakong, the groundbreaking CBDC project in Cambodia. Bakong, a smartphone app that was introduced in 2020 and enables smooth payments and money transfers using either the native currency, the riel, or the US dollar, has energized Cambodian citizens.
Related: India's CBDC Plans Include Cross-Border Payments with Global Central Banks
The dynamic CBDC project’s reach quickly increased to include nations like Malaysia, Thailand, and Vietnam. By the end of 2022, Bakong had a stunning 8.5 million users and had handled $15 billion worth of transactions.
A Vision of Seamless Cross-Border Transactions
The ambitions of Soramitsu go beyond the confines of Cambodia. The business plans to emulate Bakong’s success in promoting cross-border payments for China, Laos, and India. The ultimate objective is to build a strong network that may include Japan and facilitate smooth financial exchanges between various countries.
A key component of Soramitsu’s goals is the creation of a Japanese exchange specifically designed for stablecoins. This exchange might serve as a middleman for currency exchanges between different nations.
Consider a situation where a customer in Thailand can conveniently use a QR code to pay for items on a Japanese e-commerce website. This payment would cross borders as a Bakong in dollars and instantly change into a stablecoin in yens.
Soramitsu’s visionary payment network is poised to revolutionize fee structures. By harnessing the power of stablecoins, transactions can be executed without the constraints of traditional interbank payment networks. This transformative approach not only empowers users but also redefines the cost dynamics associated with cross-border transactions.
Related: Japan and Singapore to Launch Joint Crypto Pilot Project
Collaborative Efforts for a Brighter Financial Future
Strategic alliances have helped Soramitsu’s global payment network take shape. The project’s foundation has been strengthened through collaboration with the Tama University Center for Rule-making Strategies and the digital services provider Vivit.
In addition to working with prestigious organizations like Japan’s Mitsubishi UFJ Trust and Banking, the business is actively seeking collaborations with big e-commerce platforms. These initiatives highlight Soramitsu’s dedication to building a strong exchange infrastructure.
The financial world is eagerly watching as this innovative project takes shape. Soramitsu’s bold endeavor may transform international trade, improve financial accessibility, and reveal new facets of international economic relations.