- Cambodia CBDC Bakong application launches in partnership.
- National Bank of Cambodia partners Japanese firm Saromitsu.
- The application can process USD and Cambodian fiat Riel.
Banking institutions globally have been eyeing Blockchain technology with both skepticism and conviction simultaneously. National Bank of Cambodia collaborated with Japanese based blockchain tech firm “Soramitsu” to launch its first all in central bank digital currency CBDC Bakong and centralized digital payment mobile app focused on financial inclusion.
Its promising future can be recognized by its 10,000 active users across 15 commercialized institutions within a few days of its soft launch. Cambodia CBDC Bakong app has the ability to process digital versions of both US Dollar and Cambodian Riel. This is one of the latest addition to the global CBDC race lead by China’s Digital Yuan launch.
Makoto Takemiya, chief executive of Copyright Infopro Digital Limited, explained the Central Bank’s initial idea was to have a system that facilitates underbanked and non-banking individuals along with higher domination and transparency on the Dollar usage.
4 year national bank efforts for Cambodia CBDC Bakong
National Bank of Cambodia (NBC) has been looking into blockchain concepts and practical implementation solutions along with designing a central bank digital currency system for the past 4 years. Been on the lookout to get a blockchain firm on board had been on the agenda and Soramitsu’s next-generation authorized blockchain platform Hyperledger Iroha seemed like the perfect fit, said the director of information technology at NBC, Veasna Kru.
Cambodia CBDC Bakong and app platform enables app users to execute transactions in real-time, initiate fund transfers through QR code scans, and registered mobile number. Kru commented on Bakong being the centrifugal force of all payment institutions of the country.
Takemiya further explained that it is the Hyperledger Iroha’s simplistic approach in spite of being suitable for high-end performances that make it ideal for implementation in complex systemic programs like that of banking institutions. Customization is key when it comes to central banking system adherence and Soramitsu’s blockchain platform was able to fulfill it completely.
Collaborating firm Soramitsu aspire’s to co-own Bakong along with NBC; therefore, it is said to have invested $3 million worth of resources into creating the platform.