In October 2020, the National Bank of Cambodia (NBC) made a groundbreaking decision to adopt blockchain technology as the foundation for its revolutionary Bakong system. Since then, Bakong has witnessed remarkable success, capturing nearly 60 percent of the country’s population with almost 10 million accounts.
According to Muniswamy Kishore Kumar, Head of IT Department and Chief at Cambodia Commercial Bank Plc, blockchain technology offers a decentralized database that is distributed across a network of computers. With each transaction encrypted and linked to previous ones, the system becomes highly secure and virtually tamper-proof. The transparency and trust created through this technology benefit everyone on the network.
Niraj Gupta, Director of Macro Computing Solutions Co. Ltd, praises the potential of blockchain technology in Cambodia, particularly with the success of the Bakong platform. Bakong has not only provided financial inclusion to millions but also promises efficiency and transparency across various sectors. Blockchain startups in healthcare, education, and agriculture are fueling economic growth and driving innovation.
Daiju Aiba, a JICA Expert at the National Bank of Cambodia, affirms the advantages of blockchain, citing transparency and security as key strengths. The technology enhances trust in transactions and is particularly suitable for managing contracts in fields such as finance and supply chain management. Aiba believes that the economic efficiency of Cambodia can be increased through blockchain technology.
The NBC’s launch of Bakong, the Next Generation Payment System, based on blockchain technology, has revolutionized convenient, fast, and secure payments in Cambodia. Bakong has redefined QR payments and enabled local and cross-border remittances.
However, challenges still exist in the adoption of blockchain technology. Unclear regulations create uncertainties for businesses, the digital divide hinders wider adoption, and finding the right balance between innovation, environmental concerns, and security is crucial. Despite these obstacles, the journey of Cambodia with blockchain technology holds immense promise for the future.
As Cambodia continues to explore and embrace the potential of blockchain, it has the opportunity to unlock new avenues for economic growth and reshape various industries. With the benefits of transparency, security, and efficiency, blockchain technology has the power to drive innovation, enhance financial inclusion, and build a stronger and more prosperous economy in Cambodia.
Source: Khmer Times
