- The digital currency project in Cambodia, named Project Bakong, will soon see the light of the day after three years of development.
- The government presented the white paper that outlines the P2P system and centralized network of payments.
- National Bank of Cambodia has partnered with 11 local banks in the country to launch the digital currency.
The digital currency project in Cambodia, named Project Bakong, will soon see the light of the day after three years of development. The government presented the white paper that outlines the P2P system and centralized network of payments. The country had a topsy turvy ride with its currency, the riel. The worsened economy has led to 4000 riels equal to a single dollar, roughly. The Kingdom of Cambodia uses a dual e facto currency system that allows them to use two currencies at the same time.
Partnership with Banks and Financial Institutions
The National Bank of Cambodia has partnered with 11 local banks in the country to launch the digital currency. Bakong will be issued by the Central Bank, unlike other decentralized and unregulated cryptocurrencies. Large financial institutions have also joined hands with the government to see through the process of implementing the digital currency.
Unique features of the Bakong System
Bakong first tried in July 2019 by NBC that is more convenient and cheaper than fiat currency. The service will be offered to the public as soon as the launch takes place. Moreover, there will be no speculation surrounding Bakong as assured by Shin Chang Moo, the President of Phnom Penh Commercial Bank. The deployment is in its final stages as users will be able to use its ‘quasi-form’ CBDC for regular payments. Soramitsu, the Japanese blockchain company, credited to have designed Bokang.
They aim to launch it within the current fiscal quarter for a safe and secure peer-to-peer transaction system. The system would soon be able to make cross border payments for better reach of the digital currency. One of the unique features of the system is that it allows users to switch from coins to their fiat currency with ease. The bank accounts will be linked to Bakong wallets making it convenient to make the switch.
Benefits of Digital Currency
The transactions will carry out on a real-time basis with all the information stored with NBC. Last year. e-wallet accounts reached a total of 5.22 million accounts accounting for a 64% increase from the previous year. The digital currency would help the economy grow and promote financial inclusion.