Cryptocurrencies

Cambodia Central Bank Launches Bakong Blockchain Payments System

Project Bakong is named after Cambodia's eponymous sandstone temple.

Cambodia’s blockchain-based payments platform – the digital currency-like system Cambodian central bankers call Bakong – went live on Wednesday, according to the country’s central bank.

  • Bakong’s launch grants Cambodians a state-sanctioned platform for conducting instant mobile payments, with QR codes and phone numbers connecting digital wallets over a blockchain.
  • The National Bank of Cambodia hosts Bakong atop the Hyperledger Iroha blockchain designed by Japanese technology company Soramitsu.
  • Unlike most central bank digital currency projects, Bakong does not involve digitally native money; it is entirely fiat-backed. Users can make payments backed by their dollar or riel reserves.
  • Cambodia sees Bakong as a critical step in modernizing its payment system and de-dollarizing its economy.
  • Project-lead Serey Chea, an assistant governor at the central bank, also claimed Wednesday that Bakong’s e-payments would help prevent the spread of COVID-19.

See also: Cambodia’s Project Bakong and the Future of Payments

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