The concept of blockchain technology in Cambodia got an unprecedented boost when the National Bank of Cambodia (NBC) chose to base its revolutionary Bakong system on the technology back in October 2020. Since then Bakong has enjoyed rapid success accounting for nearly 60 percent of the Kingdom’s population with almost 10 million accounts.
Talking to Khmer Times, Muniswamy Kishore Kumar, Head of IT Department, Chief (Cambodia) Commercial Bank Plc, said, “Blockchain is a decentralized database not controlled by any single entity, but distributed across a network of computers. Each transaction is encrypted and linked to the previous ones, making it almost impossible to tamper with. Everyone on the network has access to the same information, creating transparency and trust.”
“While Cambodia navigates the uncharted waters of blockchain technology, its potential shines bright. Bakong, the central bank’s blockchain platform, empowers millions with financial inclusion, while the technology promises efficiency and transparency across sectors. Innovation thrives with blockchain startups tackling healthcare, education, and agriculture, fueling economic growth,” said Niraj Gupta, Director, Macro Computing Solutions Co. Ltd.
“I think the advantage of blockchain is transparency and security of the system,” said Daiju Aiba, JICA Expert, National Bank of Cambodia. “The transaction becomes more trustworthy in the system of blockchain and also more secure. This technology is particularly suitable for smart contracts, which assures the accuracy of managing contracts in a variety of fields including financial service and supply chain management. So I think blockchain technology can increase economic efficiency.”
In Cambodia, NBC launched Bakong – Next Generation Payment System, based on Blockchain technology to facilitate convenient, fast and secure payments. Bakong redefines QR payments, Local and Cross-Border remittances.
“However, challenges remain. Unclear regulations cast doubt on businesses, digital divide hinders wider adoption and balancing innovation with environmental and security concerns is crucial. Despite these hurdles, Cambodia’s journey with blockchain holds immense promise,” said Gupta.
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