Ms. Chia Seri, General Manager of the National Bank of Cambodia, told the Phnom Penh Post earlier this week that the Central Bank of Cambodia will launch a “blockchain-based” digital currency before the end of this fiscal quarter.

Siri said the scheme, called Project Bakong, would be Cambodia’s national payment gateway.

Users of the system can connect their bank account wallet and convert their fiat currencies into the new digital currency.

The blockchain-based digital currency can then be used for everyday payments.

In her statement, Siri added:

Bakong will play a major role in bringing all players to Cambodia’s new payment zone, making it easier for end users to pay each other regardless of which institutions they are dealing with.

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Ultimately, we hope to allow cross-border payments through the Bakong system as well.

It has been trialled since July, and is now supported by eleven banks, according to the National Bank official.

Zhang Mu, the bank’s president, told The Post that Phnom Penh Commercial Bank (PPCBank) is already using the system in all of its branches.

He said that it is cheaper and more convenient than credit cards.

But because it is a public system, Mo said:

Banks will lose some market share to Bakong, at least in the short term.

However, it is a good thing that Bakong will eventually create financially inclusive ecosystems that industry stakeholders can benefit from.

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