Cambodia’s version of a central bank digital currency (CBDC) and online banking and mobile payments app, Bakong, has seen its adoption levels grow in leaps and bounds to surpass 10 million accounts.
Since its introduction in 2020, Bakong has onboarded an estimated 60% of Cambodia’s population, with the regulators bracing for an extensive adoption campaign. According to reports, the National Bank of Cambodia (NBC) says it will not be resting on its laurels but will continue improving financial inclusion for citizens.
NBC Governor Chea Serey pointed out that apart from merely onboarding citizens, heightened focus will be given to the cybersecurity of the payment network for excellent consumer safety.
“Increasing financial inclusion is our primary goal. Bakong has demonstrated tremendous potential, with approximately 10 million accounts created since its launch,” said Serey. “However, we remain committed to focusing on consumer protection and cybersecurity to ensure a seamless and secure digital payment experience for fall users.”
Bakong’s remarkable rise in three years is not a flash in the pan but a result of its reliability and simplicity in settling local transactions. The offering’s reach and ease of use have become a preferred payment solution for millions of individuals and enterprises across Cambodia.
Developed by NBC in partnership with Japanese tech firm Soramitsu, Bakong allows Cambodians to transfer and receive digital funds using their smartphones without traditional bank accounts.
Before Bakong’s launch, only a fraction of Cambodia’s 16 million population had access to banking services, setting the stage for the CBDC’s success.
In 2022, NBC launched unified QR code support for Bakong, designed to ensure uniformity across over 50 financial institutions operating in the country.
Turning its sights on cross-border transactions
With the homefront secured, NBC focused on Bakong’s usage in cross-border transactions. The central bank unveiled an agreement with AliPay designed to allow residents access to the services of AliPay merchants, building on its previous collaboration with China’s UnionPay.
The NBC has been pursuing CBDC integration with its next-door neighbors Vietnam, Thailand, and Laos with varying degrees of success. Outside Southeast Asia, Cambodia is exploring CBDC collaborations with the central banks of Fiji, Rwanda, and the Solomon Islands in a brave effort to reduce its reliance on the greenback in international transactions.
To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChain’s CBDC playbook.
Watch: CBDCs are more than just digital money
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