National Bank of Cambodia gets ready for a blockchain-based digital currency

The central bank aims to develop a national payment gateway for Cambodia, blockchain-based, that would enable peer-to-peer payments with its own specially designed cryptocurrency. Known as ‘Project Bakong’ and first trialled by NBC in July 2019, the CBDC will work on a closed system supported by its banking members, one of them, Phnom Penh Commercial Bank (PPCBank).

Users will be able to set up a Bakong wallet that will be automatically linked to their bank accounts. NBC says it will store all transaction data from the platform, suggesting payments may be fully traceable. Locals will be able to use the ‘quasi-form’ CBDC for everyday payments from their mobile devices. The initiative is expected to support the government's push to introduce QR-based transactions throughout the country.

Compared to conventional payment and transfer methods including credit and debit cards, Bakong is cheaper and more convenient, according to the bank’s representatives, who plan to roll out the system at all branches. Bakong was designed by the Japanese blockchain company Soramitsu and has already the support of 11 national banks, with others expected to join soon.