Cambodia’s Central Bank to Adopt Digital Currency

The National Bank of Cambodia is developing its own digital currency based on blockchain technology, which will be released in the coming months.
The prospect was publicly raised by central bank governor Chea Serey, the Phnom Penh Post reported.
Dubbed Project Bakong, it will serve as the country’s “national payments gateway.”
“Bakong will play a central role in getting all players in Cambodia’s payments space onto the same platform, allowing end users to easily pay each other regardless of which bank they partner with,” Serey told the publication.
The regulator also plans to allow cross-border payments via a blockchain-based system in the future. Trials for the project began in July last year.
The report outlined that the currency is already supported by 11 banks in the country, with more set to join.
"We are in the final stages of deployment. It has taken longer than expected because we are making sure the system is as useful and convenient as possible for users," said Shin Chang Moo, president of Phnom Penh Commercial Bank (PPCBank), one of the participants in the project. "We will provide the service as soon as it is launched."
He also clarified that digital currencies will not pose a threat to traditional banking. In addition, a highly centralized currency will also eliminate the possibility of speculation, which is very common in digital currencies.
The bank will link the digital currency’s wallet system with the user’s bank account, making it easy to exchange digital currency with legal tender. In addition, the central bank is also exploring the idea of ​​introducing a standardized QR code system based on ASEAN equivalent standards.
At the same time, central banks in many developed countries, including Japan and the United Kingdom, are also studying the feasibility of developing central bank digital currencies (CBDCs).
Source: China Finance Network