Cambodia’s Central Bank Governor Chea Serey anticipates that cross-border QR code payments using the country’s digital currency will enhance the adoption of the riel.
As per Nikkei Asia’s report, Chea Serey, the governor of the National Bank of Cambodia, stated that the country’s new digital currency Bakong is poised to enhance the use of the riel through cross-border QR payments.
During the interview, Serey disclosed that although more than 80% of Cambodia’s economy is transacted in U.S. dollars due to a dual-currency system, efforts are underway to increase the riel’s usage, especially in digital transactions, where its share is notably higher.
Serey stressed the significance of cross-border transactions in extending the reach of the riel, highlighting that Bakong currently facilitates QR code-based payments across Cambodia, Thailand, Laos, and Vietnam, with compatibility extending to China’s UnionPay. According to the report, digital transactions using Bakong reached $70 billion by 2023, almost doubling Cambodia’s gross domestic product.
Launched in 2020, Bakong was designed to streamline payment processes for both individuals and businesses. Although often labeled as a digital currency, Bakong stands apart from traditional central bank digital currencies (CBDCs) because it is backed by both the Cambodian riel (KHR) and the U.S. dollar (USD).
Serey highlighted the intricate nature of internationalizing digital currencies, requiring the integration of diverse technologies across countries to tackle challenges like capital flows and Know-Your-Client processes. Looking ahead, the central bank intends to introduce cross-border payment services with India by June and is actively pursuing similar collaborations with Japan, according to Serey.
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