The National Bank of Cambodia (NBC) is preparing to launch a central bank digital currency (CBDC). Known as the “Bakong Project”, it was developed by Japanese blockchain company Soramitsu.
Chea Serey, the CEO of NBC, told Phnom Penh Post this week that the central bank has developed “a national payment system for Cambodia.” This is a blockchain platform, peer-to-peer, with a specially designed cryptocurrency. Serey did not offer a concrete deadline for CBDC launch.
Originally designed for domestic payments in Cambodia, NBC plans to integrate a cross-border payment facility into the Bakong platform.
Bakong already has the support of 11 national banks, and other institutions are expected to join soon.
“Bakong will play a central role in bringing all players in the payment space in Cambodia under the same platform, making it easy for end users to pay each other, regardless of the banking institutions they work with,”
said Serey.
Bakong is cheaper and more convenient
Bakong was first tested by NBC in July 2019 in a closed system made up of local banks. One of the representatives of Phnom Penh Commercial Bank (PPCBank), who participated in the tests, told The Post.
“Compared to conventional payment and transfer methods, including credit and debit cards, Bakong is cheaper and more convenient. We are in the final stages of implementation. It took a little longer than we expected, because we want to make sure the system is as useful and convenient as possible for users. We will provide the service as soon as it is launched ”.
Users will be able to set up a Bakong wallet that will be automatically linked to their bank accounts. This will allow real-time conversion of fiat currencies into the new CBDC. NBC says it will store all transaction data on the platform, suggesting that payments could be fully traceable.
Users will be able to use Bakong for daily payments on their mobile devices. The initiative is expected to support government efforts to introduce QR-based transactions across the country.
According to the statements made by CEO Soramitsu, the new CBDC is “a tokenized version of the fiat USD and Riel currencies in the reserve of the central bank of Cambodia.
“The Bakong system can support any type and number of currencies, including cryptocurrencies”,
he added. Soramitsu is currently working on implementing similar systems for other countries in the world.
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