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The National Bank of Cambodia (NBC) continues to advance its plan for a central bank-like digital currency called Bakong, revealing several project milestones.
Chea Serey, Director General of NBC and Bakong Project Leader Say In an interview with the Nikkei Shimbun on Wednesday, Bakong’s e-wallet reached 200,000 users in June, doubling the number three months ago.Eight empty payment remittance service based on blockchain technology Initially launched by NBC October 2020.
Serey pointed out that the digital currency project accumulated nearly 6 million users in the first half of 2021, including users indirectly contacted through member bank mobile applications, and recorded 1.4 million transactions worth nearly 500 million US dollars.
The official revealed that NBC is currently exploring cross-border transactions through Bakong, working closely with the Bank of Thailand and Malayan Banking, Malaysia’s largest bank. Serey explained that cross-border Bakong transactions will provide Cambodians abroad with a “safe and effective way to send money to their families”. She pointed out that the new payment method will benefit many Cambodian women emigrating to Malaysia.
According to reports, Serey also stated that the launch of Bakong significantly increased the use of Cambodia’s national currency, the riel, which is part of the country’s dual currency system with the US dollar. However, she added that the digital currency project alone cannot transform Cambodia from a dollar-based economy to riel.
“There are other policies that need to be put in place, such as maintaining a stable exchange rate and inflation rate,” Serey said, and concluded that Bakong’s mission is to “increase the use of local currency” and its long-term goal is to “use only” the country’s local currency. .According to the Wall Street Journal, the U.S. dollar is currently used 90% of financial transactions in Cambodia.
related: France and Singapore pilot cross-border CBDC transactions
In addition, the Director General of NBC expressed skepticism about Bitcoin (Bitcoin), the most valuable cryptocurrency in the world. Serey stated that the crypto industry needs regulation and consumer protection measures to avoid the consequences of price fluctuations, and pointed out: “There are no fundamentals, if you allow investors to enter this…crash?”
Bakong was developed by NBC in cooperation with Japanese blockchain technology company Soramitsu. It allows Cambodian citizens to pay in stores or remit money through a mobile application, and supports settlement and remittance in riel or U.S. dollars. When the project started, Serey emphasized that Bakong should not be called CBDC, but should be called payment and remittance services.
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