- Japanese blockchain startup Soramitsu is exploring new applications for central bank digital currency (CBDC) in the cross-border payment system for Asian countries.
- Soramitsu will deploy Cambodia’s CBDC and fiat-pegged stablecoins as part of its new payment system targeting countries like India, China, Japan, and regions like Southeast Asia.
- The project builds upon Soramitsu’s CBDC expertise, including its involvement in the Asian CBDC project Bakong in Cambodia and Laos’ Lao kip.
- Cambodia’s Bakong, launched in 2020, allows residents to pay at stores or send money through a mobile app using the local currency riel or U.S. dollar. Bakong’s adoption has expanded to countries like Malaysia, Thailand, and Vietnam, with 8.5 million users and around $15 billion in payments.
- Soramitsu plans to establish a Japanese exchange for stablecoins as part of the project, allowing conversions of currencies from diverse countries.
- The payment network aims to reduce transaction fees by implementing stablecoins that can be transferred without going through interbank payment networks.
- Soramitsu has formed a team with Tokyo-based digital services company Vivit and the Tama University Center for Rule-making Strategies to build the cross-border payment network and is looking to partner with major e-commerce sites.
- The startup is working with Japan’s Mitsubishi UFJ Trust and Banking and other partners to create the necessary exchange infrastructure.
Japanese startup to use stablecoins and CBDC to link Asian countries
