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- Cambodia was one of the countries that were quick and open to understanding the digital currency arena, along with the financial technology involved.
- Integrating the crypto world with the traditional banking system has been one of the most crucial goals of the crypto community around the globe.
- Chea Serey, the director-general of the National Bank of Cambodia, made the sensational announcement in late January.
Integrating the crypto world with the traditional banking system has been one of the most crucial goals of the crypto community around the globe. Various efforts have made to demystify the world of digital currency and the blockchain systems to policymakers, regulators, and bankers all over the world.
Cambodia was one of the countries that were quick and open to understanding the digital currency arena, along with the financial technology involved. The National Bank of Cambodia was recently in the news after the country launched its very own blockchain-based cryptocurrency on a trial basis.
The crypto coin, which was called Bakong, was released in July last year. Now, the country has yet again made headlines for announcing it’s operational starting from as early as this quarter.
Chea Serey, the director-general of the National Bank of Cambodia, made the sensational announcement in late January. He described his hopes for the crypto coin by stating that it will be instrumental in providing a level-playing field for all in the Cambodian payment industry.
He said,
“Bakong will play a central role in bringing all players in the payment space in Cambodia under the same platform. This will make it easy for end-users to pay each other regardless of the institutions they bank with. Eventually, we hope to allow cross border payment through the Bakong system too.”
His announcement on cross border trading met with surprise from many.
Currently, blockchain-based Bakong is a closed system. It is being backed by the Cambodian banking authorities, making it unique in the crypto world.
Most currencies do not have backing by central agencies and are thus more prone to vulnerabilities. Further, the cryptocurrency will enable users to process their transactions in real-time.
The National bank will hold centralized records of these crypto transactions. The user’s bank account will be linked using a software wallet too hard currency.
Cambodia has evolved from its previous stance on cryptocurrencies where businesses were required to obtain licenses before trading in crypto. The present move is a positive sign for crypto adoption across the world.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
