Bakong: Empowering Global Innovation through Cambodia’s Blockchain-Based Payment System

by | Jul 4, 2023

Cambodia has recently made a significant impact on the financial industry, leaving the world in awe with its groundbreaking innovation, Bakong. This revolutionary blockchain-based payment system is rewriting the rules of the game, transforming Cambodia’s economy, and propelling the country to the forefront of global financial innovation. Brace yourselves, because Bakong is here to shake things up!

The Cambodian riel, the local currency, has experienced an unprecedented surge in demand, indicating the unwavering confidence that Cambodian citizens have in their own currency. Its value has skyrocketed from 356 billion riels in 1998 to a staggering 14.1 trillion riels in 2022. With an average annual growth rate of 16.6 percent, the riel has outpaced many of its regional counterparts. It is safe to say that the riel is a currency on the rise!

But the revolution doesn’t stop there. Cambodia and Thailand have joined forces to take cross-border payments to a whole new level. Through the launch of the second phase of their cross-border QR payment system, Bakong has seamlessly integrated with Thailand’s payment infrastructure. This integration allows Cambodians to make payments in Thailand using their riel-dominated accounts, while our Thai friends can do the same in Cambodia. This convenient and efficient payment system simplifies financial transactions between the two nations and encourages the use of the riel currency on both sides of the border. It’s a win-win situation!

Bakong’s success extends beyond Cambodia’s borders. The National Bank of Cambodia (NBC), the driving force behind Bakong’s expansion, has ambitious plans to connect the payment system with other countries in the region. Malaysia and Thailand are already linked to Bakong, and Vietnam, Laos, Myanmar, China, and India are next in line. Cambodia aims to promote the use of local currencies in trade and investment, gradually reducing reliance on the almighty US dollar.

But Bakong is more than just a convenient payment system; it promotes financial inclusion as well. The NBC’s goal is to ensure that every Cambodian citizen has access to secure and affordable payment systems, and they are succeeding. Bakong’s infrastructure has experienced exponential growth, with an astonishing 2.7 times increase in the number of transactions, totaling a whopping 30.3 million transactions. Bakong is leveling the playing field and bringing financial services to the masses.

The NBC’s role in Bakong’s rise cannot be overstated. By harnessing the power of blockchain technology, the NBC is revolutionizing Cambodia’s payment system, supporting tourism, investment, trade, and remittances from Cambodian migrant workers abroad. Their ambitions extend beyond national borders as they collaborate with countries across Asia, Africa, Latin America, and Europe, with the aim of establishing secure, low-cost, and fast cash payment systems. Bakong has the potential to become the global payment solution we’ve all been waiting for. Watch out, world!

Perhaps the most exciting aspect of Bakong’s rise is its potential to drive the shift from dollarization. Cambodia has long relied on the US dollar for financial transactions, but Bakong is changing the game. With Bakong’s mechanism requiring buyers and sellers to have riel-dominated accounts, the use of the local currency is being actively promoted within the country. This shift not only strengthens Cambodia’s economic independence but also fosters a sense of national pride. The riel is reclaiming its rightful place in the financial landscape, and Bakong is leading the charge.

In conclusion, Bakong’s rise is nothing short of extraordinary. This blockchain-based payment system is revolutionizing cross-border transactions, promoting the use of local currency, and driving financial inclusion in Cambodia and beyond. As Bakong continues to expand its reach and forge new connections, it has the potential to become a global pioneer in the digital payment landscape. Cambodia’s commitment to embracing technological advancements for the betterment of its economy and its people is truly awe-inspiring. Buckle up, because the future of finance is here, and its name is Bakong!