Cambodia officially released a national virtual currency

On Wednesday, Cambodia officially launched a state-owned bank-backed digital currency, using blockchain technology designed by a Japanese startup. This cryptocurrency was issued on the initiative of the National Bank of Cambodia and is called “Bakong”.

With the launch of this currency, Cambodia has become one of a handful of countries in the world to put into circulation a central bank-backed digital currency. The name Bakong is named after a famous ancient temple in this country.

Bakong Temple is located in the Angkor ruins.

This Bakong will support transactions with both the USD and the riel, the Cambodian currency. The issuance of this digital currency is expected to help Cambodia make payments and transfer money between individuals through their smartphones.

The use of this electronic currency will be done through a mobile application, installed on a smartphone. While the proportion of Cambodians owning a traditional bank account is very limited, smartphones have appeared in nearly every corner of this Southeast Asian country.

Users after installing this mobile app can make payments and transfer money between e-wallets by scanning a QR code or touching the recipient’s phone number.

During the Bakong launch event in the capital Phnom Penh on Wednesday, Ms. Chea Serey, general manager of the National Bank of Cambodia, expressed her hope that the cryptocurrency will play an important role in preventing stop spreading corona virus.

” I hope the official launch of the Bakong system today will help promote social welfare and also prevent the spread of this pandemic by facilitating seamless electronic payments between people. without cash . ” She said.

Japanese financial technology startup, Soramitsu Co is the company that designed this system. The central bank of Cambodia started testing the cryptocurrency in July of last year. So far, about 20 financial institutions have been involved in this project, and there are dozens more willing to participate.

Pen Chenda, senior official of the Cambodian Association of Finance and Technology, said Bakong will contribute to the benefits of small businesses due to its many cost advantages and associated risks compared to money. face.

Refer to the Bangkok Post