Bakong Boosts Digital Currency Game as Alipay Joins Forces!

"Bakong Service Revolutionizes Cambodian Banking Sector with Blockchain Technology"

The National Bank of Cambodia (NBC) has launched a new payment service called bakong, which operates on a blockchain. However, it is important to note that bakong is not a central bank digital currency (CBDC). Unlike a CBDC, the currency used in bakong is actually a liability of the commercial banks that participate in the system. This distinction is crucial in understanding the nature of this innovative payment service.

One of the key features of bakong is its ability to facilitate transactions in both United States dollars and Cambodian riel. This is particularly significant for the Cambodian economy, which is heavily dollarized. Dollarization refers to the widespread use of the US dollar as a medium of exchange, store of value, and unit of account in a country’s economy. In Cambodia, the US dollar is commonly used alongside the official currency, the Cambodian riel.

The introduction of bakong aims to provide a more efficient and secure payment system for Cambodians. By leveraging blockchain technology, the NBC hopes to enhance financial inclusion and reduce the reliance on cash transactions. This is especially important in a country where a significant portion of the population remains unbanked or underbanked.

With bakong, users can make peer-to-peer transfers, pay for goods and services, and even receive their salaries directly into their digital wallets. The system operates in real-time, allowing for instant transactions and settlements. This is a significant improvement compared to traditional banking systems, where transfers can take hours or even days to process.

To use bakong, individuals and businesses need to open an account with one of the participating commercial banks. These banks act as intermediaries, converting the users’ funds into bakong and facilitating transactions within the system. The NBC oversees the operation of bakong and ensures compliance with relevant regulations and standards.

The introduction of bakong is part of the NBC’s broader efforts to modernize the country’s financial system. By embracing blockchain technology, Cambodia is positioning itself as a leader in the adoption of digital payment solutions. This move not only benefits the Cambodian people but also contributes to the overall economic development of the country.

It is worth noting that bakong is not the first blockchain-based payment system in the world. Other countries, such as China with its digital yuan pilot program, have also explored the potential of blockchain in revolutionizing their financial systems. However, each system has its own unique features and serves the specific needs of its respective country.

In conclusion, the launch of bakong by the National Bank of Cambodia represents a significant step towards a more efficient and inclusive financial system. By leveraging blockchain technology, bakong aims to provide secure and instant payment solutions for Cambodians. While it is not a central bank digital currency, bakong offers a promising alternative that addresses the challenges of dollarization and promotes financial inclusion. As Cambodia continues to embrace digital innovation, its financial system is poised for further growth and development.

Martin Reid

Martin Reid

Leave a Replay

Scroll to Top