Cambodia is investigating Bakong-like CBDC transactions

The National Bank of Cambodia (NBC) continues to develop with the central financial institution’s digital currency-like initiative referred to as Bakong, which unveils a number of the mission’s milestones.

NBC’s common supervisor and Bakong mission chief Chea Serey mentioned in an interview with The Nikkei on Wednesday that Bakong’s e-wallet reached 200,000 customers in June, greater than double what it was three months in the past. Based on blockchain know-how, the Bakong remittance and cost service was initially launched by NBC in October 2020.

The digital foreign money mission attracted practically 6 million customers within the first half of 2021, together with these accessed not directly by way of member banks’ cell purposes, and recorded a complete of 1.4 million offers valued at practically $ 500 million, famous Serey.

The official introduced that NBC is at present investigating cross-border transactions by way of Bakong, working carefully with Thailand’s central financial institution and Malaysia’s largest financial institution, Maybank. Serey acknowledged that Bakong cross-border transactions provide Cambodians overseas a “safe and efficient way to send money back to their families”. She discovered that the brand new cost technique will profit many Cambodian ladies who to migrate to Malaysia.

Serey additionally reviews that the introduction of Bakong has considerably elevated using Cambodia’s nationwide foreign money, the riel, which, together with the US greenback, varieties a part of the nation’s twin foreign money system. However, the digital foreign money mission alone will not be capable to transfer Cambodia from a US dollar-based financial system to the riel, she added.

“There are other policies that need to be implemented, such as a stable exchange rate and inflation rate,” Serey mentioned, concluding that Bakong’s mission is to “increase the use of local currency” with the purpose of long-term “usage.” “Only” the native foreign money. According to the Wall Street Journal, the US greenback is now used for 90% of economic transactions in Cambodia.

Related: France and Singapore are piloting cross-border CBDC transactions

In addition, the NBC CEO expressed skepticism about Bitcoin (BTC), essentially the most invaluable cryptocurrency on the earth. Serey mentioned that the crypto business wants regulation and shopper safety to keep away from the results of risky costs, stating, “There are not any fundamentals and when you permit merchants to speculate … Who’s in charge when costs crash? “

Developed by NBC in partnership with Japanese blockchain know-how firm Soramitsu, Bakong permits Cambodian residents to pay in shops or ship cash by way of a cell app, and helps funds and transfers in Dong Riel or US {dollars}. At the beginning of the mission, Serey emphasised that Bakong shouldn’t be known as a CBDC, however as a cost and remittance service.