Bakong is the name given to the National Bank of Cambodia’s central bank digital currency, which went through pilot phase last July.
Chea Serey, director-general of the National Bank of Cambodia, stated that the system will be functional within the first quarter of 2020. Serey referred Bakong as “the national payment gateway for Cambodia.”
“Bakong will play a central role in bringing all players in the payment space in Cambodia under the same platform, making it easy for end-users to pay each other regardless of the institutions they bank with. Eventually, we hope to allow cross border payment through the Bakong system too.”
Contrary to several blockchain led cryptos, Bakong is a complete system supported by banking authorities. A software wallet associated to customer’s bank account enables them to transact with physical currency in an easy manner.
The system backs real-time dealings while the National Bank of Cambodia holds centralized documents about the movement of money. This is slightly different to Cambodia’s earlier stance on blockchain technology and cryptocurrencies.
Earlier, the country had made it compulsory for cryptocurrency business to obtain a license. In fact, a cryptocurrency exchange in Cambodia became the first crypto focused organization to receive license in August 2018.
In any case, the facility offered by a national bank to its clients to have dealings with each other using blockchain is anticipated to spur adoption.
