Cambodia’s digital currency, Bakong, a collaborative effort with a Japanese startup, has achieved a notable milestone with approximately 10 million accounts, according to the country’s central bank governor, Chea Serey. In an interview with Nikkei in Tokyo, Governor Serey revealed that this figure translates to around 60% of Cambodia’s population, potentially enabling a majority of citizens to utilize Bakong for payments and money transfers.
Governor Serey also disclosed plans for the National Bank of Cambodia (NBC) to expand the cross-border payment network for Bakong. This expansion will be in collaboration with UnionPay International, a leading Chinese card payment service, along with other foreign partners.
The motivation behind Bakong’s development stems from the limited number of bank accounts in Cambodia, hindering the establishment of reliable payment methods for individuals and businesses. Launched in October 2020 through a partnership with Soramitsu, a Tokyo-based blockchain technology startup, Bakong is recognized as one of the world’s first central bank digital currencies, allowing smartphone users to conduct monetary transactions seamlessly.
Governor Serey emphasized the NBC’s commitment to “financial inclusion” and expressed a desire to further increase Bakong’s user base by focusing on consumer protection and cybersecurity measures.
Addressing cross-border transactions, Serey revealed that Bakong has established payment connectivity with Thailand, Laos, and Vietnam. Moreover, plans are underway to extend the blockchain-based currency to China through UnionPay. The NBC has also inked memoranda of understanding (MOUs) with Alipay, the digital payment service of Ant Group, and has collaborations with the Central Bank of Solomon Islands, the Reserve Bank of Fiji, and the National Bank of Rwanda.
Notably, the NBC signed an MOU with Japan’s Ministry of Economy, Trade and Industry to facilitate QR code-based payments between Cambodia and Japan, showcasing the country’s efforts to integrate its digital currency into international financial networks.
