Soramitsu, a Japanese financial software company announced the signing of a Memorandum of Understanding with the Bank of Lao People’s Democratic Republic’s Payment Systems Division. in the launch of the project proof-of-concept for the central bank digital currency of Laos (CBDC), which under the agreement The digital version of the Lao Kip currency is called “DLak”.debuton February 7
The central bank will provide DLak to commercial banks in exchange for fiat currency, and users will exchange fiat for DLak from commercial banks. Users will then be able to purchase from participating merchants using a QR code and app.
DLak is instantly converted into fiat by commercial banks. Enable merchants to receive payments in real time. by the previous Digital transactions in Laos take up to a month to clear.
Users do not need a bank account to transact with DLak. This is very suitable for those who do not have a bank account. According to Nikkei Asia, about 70% of Laotians do not have one.accountbank
“CBDCs are a way to develop sophisticated payment systems. as well as ensuring economic stability through a local currency that does not depend on other countries.”
The DLak project is modeled after the Cambodian Bakong system launched in collaboration with Soramitsu in 2020. The Bakong system is not described as a CBDC, but it reached 200,000 users within months. and trials of cross-border transactions will begin in 2021.
refer : LINK
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