Thailand pushes for regional cross-border fund transfer via QR code

It tying up with Cambodia, Laos, Myanmar and Vietnam.

Thailand’s central bank has initiated a cross-border fund transfer initiative using QR code technology with Cambodia, Laos, Myanmar and Vietnam (CLMV) in a move that marks deepening regional collaboration.

The money transfer service is expected to give a boost to CLMV migrant workers based in Thailand as they will get to enjoy lower costs for remittance services, finance minister Apisak Tantivorawong told local media.

The move comes after local media reports revealed that the central banks of Thailand and Cambodia are said to be working together to roll out a QR code payment system that will go live in 2019.

The Bank of Thailand (BoT) has proposed the use of local currencies for trade settlement between Thailand and CLMV in order to reduce associated cost and risks from foreign currency conversion.

Trade settlement in the region is denominated in US dollar which adds unto the payment costs for operators.

Narrowing the gap between bid and offer prices of local currencies will facilitate direct local currency settlement for trades, said Apisak who added that direct settlement between the baht and yuan is possible if spread is narrowed.