Technology

Cambodia officially launches the central bank’s digital currency


On October 28, Cambodia officially launched a digital currency called Bakong, guaranteed by the National Bank of Cambodia (NBC) with a mobile application that supports this payment.

Bakong Cryptocurrencies, an initiative of NBC, Cambodia’s central bank, was developed on the basis of a blockchain (blockchain) platform designed by a Japanese company.

National Bank of Cambodia (NBC) officially launched the Bakong digital currency on October 28. Photo: NHK

The Bakong money is named after a famous Cambodian temple. It is one of the few central bank-backed cryptocurrencies to come into full operation recently. Bakong Cryptocurrency supports real-time US dollar and Cambodian riel transactions, promising to help Cambodians make payments and money transfers between individuals using apps on their smartphones. smart (smartphone).

While the number of Cambodians with a bank account is limited, smartphones have been popular in every corner of this Southeast Asian country. According to the World Bank (WB), 78% of Cambodian citizens over 15 years old do not have a bank account. With Bakong money, every citizen in the country can access banking services using their smartphones. Smartphone users can open a Bakong account with any bank linked to the Bakong digital payment system even if they do not have a traditional account at this bank.

At the Bakong crypto launch in the capital Phnom Penh, Ms. Chea Serey, NBC’s CEO, expressed her hope that the Bakong money will help prevent the spread of the Covid-19 epidemic. “I hope the official launch of the Bakong digital payment system will promote the benefits of society and prevent the spread of the Covid-19 epidemic by facilitating seamless payment transactions,” she said. between people without touching cash ”.

She said through the Bakong payment system, customers of financial institutions can transfer money to each other with fast speed and low cost. She also said that Bakong digital money will help modernize Cambodia’s payment system. She emphasized Bakong as a core payment system that allows banks and financial institutions to transact with each other in a safe, efficient and cost-effective way.

So far, 18 financial institutions including 16 banks and two mobile payment service providers in Cambodia have joined the Bakong system. Ms. Serey revealed that 24 other financial institutions have been licensed to participate in the system in principle. After the trial launch recently, the Bakong payment system has attracted 10,000 regular users from 15 commercial banks.

NBC has been studying the blockchain concept and solutions that implement this technology together with a central bank digital payment system for the past 4 years. NBC has partnered with blockchain technology company Soramitsu (Japan) to develop Bakong digital currency. Director of information technology of NBC, Veasna Kru, said that the blockchain platform called Hyperledger Iroha of Soramitsu is very suitable for the digital payment system Bakong.

Makoto Takemiya, founder and CEO of Soramitsu, said the original aim of NBC was to build a comprehensive payment system to serve Cambodians who either did not have access to or access to a full range of services. banking service. At the same time, through this system, NBC also wants to control the currency better by capturing the people using the US dollar.

The Hyperledger Iroha platform’s simple approach makes it easy to execute complex system programs like banks, he said. Central banks, he said, do not want to add a layer of slow and overly complicated technology to their systems.

Soramitsu wants to co-own the intellectual property of the Bakong system with NBC, and so far, the company has invested money and resources equivalent to 3 million US dollars to develop this payment system. Soramitsu has opened an office in Cambodia with 25 employees, allowing the company to be ready to assist NBC in the Bakong crypto implementation.

NBC’s move to launch digital currency Bakong is the latest in the race to deploy cryptocurrencies by central banks around the globe. In early October, the city government. Shenzhen (China) distributed the People’s Bank of China (PBoC) digital currency with a total value of 10 million yuan (RMB) to the random 50,000 residents.

This is PBoC’s biggest digital currency test. As a result, a total of 8.8 million yuan of digital yuan was used to pay through a mobile app in nearly 63,000 shopping transactions at 3,389 designated stores during a test week. In the near future, the PBoC plans to continue testing the yuan in 28 other cities including major cities such as Beijing, Shanghai, Tianjin, Guangzhou, and Chongqing.

According to the Thesaigontimes

China's digital currency threatens to monopolize Bitcoin and USD

China’s digital currency threatens to monopolize Bitcoin and USD

The digital yuan can increase the Chinese government’s power in the financial industry, even turning the balance of the global economy around.

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