Creating a national-level payment portal, Cambodia will launch a blockchain-based digital currency

According to foreign media reports on January 31, Cambodian Central Bank Governor Chea Serey said this week that the bank will launch a "blockchain-based" digital currency before the end of this fiscal quarter.

5837015193_f60a8d474a_b (Image source: flickr )

Serey said that the digital currency program called "Bakong" is "the national payment gateway for Cambodia", which is actually a central bank digital currency (CBDC), Serey said:

Users of this closed system can connect wallets to their bank accounts and convert their fiat currencies into new digital currencies. This blockchain-based currency can be used for daily payments on mobile platforms.

Bakong will play a central role in bringing all participants in the Cambodian payment sector into the same platform, making it easier for users to pay regardless of which bank they eventually do business with.

Serey said:

Ultimately, we also want to allow cross-border payments through the Bagun system.

According to National Bank officials, the plan began trials last July and has now been supported by 11 banks. Serey expects more institutions to join the system soon.

Previously, PPCBank had used the system in all its branches, and Chang Moo told the Washington Post that Bakong was cheaper and more convenient than credit and debit cards.

But Moo said that because it is a public system, "at least in the short term," part of the bank's market share will be taken away by Bakong. But overall, this is a good thing, Moo said:

Bakong will eventually create a financially inclusive ecosystem that will benefit all stakeholders in the industry.

Copyright Notice:

Original: https://decrypt.co/18073/cambodia-release-blockchain-based-digital-currency-this-quarter

Author: Robert Stevens

Compilation: Captain Hiro

Source (translated): Babbitt Information (http://www.8btc.com/550816)