BANK OF CAMBODIA: WELL ALLOW MORE CONTROL WITH BLOCKCHAIN PAYMENTS

Imagine a world where you have complete control over your money, where sending remittances is seamless and efficient, and where financial transactions are transparent and secure.This vision is rapidly becoming a reality in Cambodia, thanks to the innovative approach of the National Bank of Cambodia (NBC). While sometimes referred to as a central bank digital currency (CBDC), Bakong is more similar to a tokenized deposit initiative by the central bank. Bakong has seen a surge in uptake in recent years, with around 30 million wallets to date, a figure that is 1.7 times Cambodia s population.Through the implementation of blockchain technology, specifically the Bakong payment system, the NBC is empowering its citizens with unprecedented financial control and efficiency.Assistant Governor Serey Chea recently highlighted this transformative shift, emphasizing that blockchain payments will fundamentally alter how Cambodians manage their finances.This isn't just about adopting a new technology; it's about fostering financial inclusion and driving economic growth within the nation. With blockchain payment systems, a person's confirmed credentials can be safely maintained in the blockchain, and because blockchain is immutable, the data's authenticity is ensured. This will reduce the time spent on digital identity verification because users will no longer have to enter their verification credentials every time they make aThe success of Bakong, already processing transactions worth an astounding 330% of Cambodia’s GDP in 2025, demonstrates the immense potential of blockchain in revolutionizing the financial landscape.But what exactly is Bakong, and how does it grant users more control? Source: Bank of Canada. UBS s Blockchain-Based Payment System. UBS has piloted a blockchain-based payment system, UBS Digital Cash, to enhance cross-border transactions. The system supports payments in multiple currencies, including U.S. dollars, Swiss francs, and euros, using a private blockchain network.Let's delve into the details.

Understanding Bakong: Cambodia's Blockchain Payment System

Bakong, developed in partnership with blockchain experts Soramitsu, represents a significant step towards modernizing Cambodia’s payment infrastructure.It leverages the Hyperledger Iroha blockchain framework to create a fiat-backed digital currency.This means each digital unit is pegged to the Cambodian Riel, offering stability and trust. The National Bank of Cambodia recently published its annual report, disclosing continued growth in the Bakong blockchain-based payment systems. Payment volumes of $104.81 billion during 2025 represent 330% of the country s gross domestic product (GDP).Unlike cryptocurrencies that can experience volatile price swings, Bakong provides a stable and reliable medium of exchange.But what makes Bakong different from a traditional central bank digital currency (CBDC)?

Bakong vs.CBDC: A Key Distinction

While often referred to as a CBDC, Bakong is more accurately described as a tokenized deposit initiative by the central bank. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency in an interview with CNBCThis means it operates more like a network of participating banks, allowing users to transact directly with each other through digital wallets linked to their bank accounts.In contrast, a typical CBDC involves a direct digital currency issued and managed solely by the central bank. Skip to main content Bitcoin Insider. MenuThis subtle difference allows Bakong to leverage the existing banking infrastructure while still reaping the benefits of blockchain technology.

The Surge in Bakong's Popularity: A testament to its effectiveness

The adoption rate of Bakong has been nothing short of phenomenal. Bank of Cambodia: We ll Allow More Control With Blockchain PaymentsTo date, the platform boasts approximately 30 million wallets, a figure that surpasses Cambodia’s entire population by 1.7 times. Bank of Cambodia: We ll Allow More Control With Blockchain PaymentsSource: CointelegraphPublished onThis seemingly impossible number is explained by the fact that many individuals hold multiple wallets, reflecting the platform's widespread utility and ease of use.This impressive uptake highlights the appetite for digital payment solutions in Cambodia and demonstrates the effectiveness of Bakong in meeting the needs of its users.

Recent data underscores this trend, revealing that Bakong's transaction volumes in 2025 accounted for a staggering 330% of Cambodia's GDP. The National Bank of Cambodia s latest annual report provides an interesting perspective on the rapid evolution of digital finance, particularly through the expansion of the Bakong payment system. In 2025 alone, Bakong facilitated transactions worth US$ 104.81 billion an extraordinary 330 percent of Cambodia s GDP.This remarkable figure signifies the platform's integral role in the country's economic activity and its growing dominance in the payment space. Cambodia s national payment system, Bakong, has recorded impressive user metrics with volumes spiking three-fold over the last year. According to a report, volumes on Bakong in 2025 make up 330% of Cambodia s gross domestic product (GDP), a massive spike from previous years.It's not just about large transactions either; Bakong facilitates a wide range of payments, from everyday purchases to international remittances.

How Blockchain Payments Empower Users: Gaining More Control

Assistant Governor Serey Chea's assertion that blockchain payments will enable greater financial control is at the heart of Bakong’s value proposition. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency in an interview with CNBC published onHere’s how blockchain empowers users:

• Direct Control Over Funds: Unlike traditional banking systems where transactions are often mediated by multiple intermediaries, blockchain allows for direct peer-to-peer transactions. What Are Blockchain Payments? When making a bank payment, approval is required from the banks in which the accounts of the sender and recipient of funds are registered, as well as confirmation from the payment system. When using the blockchain, there is no single controlling body.This eliminates the need for reliance on intermediaries, giving users more control over their money.
• Transparency and Traceability: Every transaction on the Bakong network is recorded on the blockchain, creating a transparent and immutable audit trail. La intenci n es permitir un mayor control sobre el dinero en lugar de tener que depender del beneficiario de la transferencia para gastar el dinero. Como inform Cointelegraph en julio, UnionBank, con sede en Filipinas, ha completado con xito un piloto de una remesa transfronteriza basada en blockchain desde Filipinas a Singapur. Sigue leyendo:This enhances accountability and reduces the risk of fraud.
• Enhanced Security: Blockchain’s inherent security features, such as cryptography and decentralization, make it difficult for malicious actors to tamper with or steal funds. Economic Monetary Statistics Bulletin No.374 -32nd Year, December 2025. . Cambodia BOP No.86 Fourth Quarter 2025. . H.E. Dr. Chea Serey, Governor of the National Bank of Cambodia, was invited to participate as a speaker in a roundtable forum on Cross-Border Payment Rails: From Infrastructure Roll-Out to a Smooth Customer JourneyThis provides users with greater confidence in the security of their transactions.
• Reduced Remittance Costs: Traditional remittance services often charge hefty fees, eating into the money sent home by migrant workers.Bakong offers a more cost-effective alternative, allowing users to send and receive money with significantly lower fees.
• Improved Remittance Efficiency: Blockchain streamlines the remittance process, reducing the time it takes for money to reach its destination. Cambodia s national blockchain-based payment system, Bakong, has witnessed a significant surge in usage, with payment volumes increasing three-fold over the past year. Recent data reveals that the platform s transaction volumes in 2025 accounted for approximately 330% of Cambodia s gross domestic product (GDP), reflecting substantialThis is particularly beneficial for families who rely on remittances to cover essential expenses.

The Role of Blockchain in Enhancing Remittance Efficiency

One of the key areas where blockchain is poised to make a significant impact is in the realm of remittances. Bank of Cambodia: We ll Allow More Control with Blockchain PaymentsCambodia, like many developing nations, relies heavily on remittances from its citizens working abroad.Traditionally, sending money across borders has been a costly and time-consuming process, involving multiple intermediaries and exchange rate fluctuations. That s what the National Bank of Cambodia (NBC) is doing. The central bank partnered with blockchain developer experts, Soramitsu to modernize the country s legacy retail payments with the help of the Hyperledger Iroha blockchain framework. The project, called Bakong, is a smart first step that created a fiat-backed digital currency.Bakong offers a more efficient and affordable solution.

As Cointelegraph reported, UnionBank in the Philippines successfully piloted a blockchain-based cross-border remittance from the Philippines to Singapore. The above review of the challenges in the payment system and services in Cambodia, alternative payment technology, i.e. blockchain and DLT, and the experiment of and research into blockchain as an alternative to current payment services among central banks around the globe lead NBC to identify several areas of benefits in the current paymentThis successful pilot demonstrates the potential of blockchain to streamline and reduce the costs associated with international money transfers, which is something that Bakong can also benefit from.

The Security Advantages of Blockchain Technology

The security of financial transactions is paramount, and blockchain offers a robust solution to address many of the vulnerabilities inherent in traditional systems. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency in an interview with CNBC published on Oct. 22.The immutable nature of the blockchain means that once a transaction is recorded, it cannot be altered or deleted.This creates a permanent and verifiable record of all transactions, reducing the risk of fraud and corruption.

Securing Digital Identities with Blockchain

Furthermore, blockchain can enhance digital identity verification.With blockchain payment systems, a person's confirmed credentials can be safely maintained on the blockchain.Because the blockchain is immutable, the data's authenticity is ensured, reducing the time spent on digital identity verification.Users will no longer have to enter their verification credentials every time they make a transaction, streamlining the process and improving the user experience.

Addressing the Challenges of Payment Systems in Cambodia

The NBC’s decision to embrace blockchain technology was driven by a desire to address the challenges facing the Cambodian payment system.Some of these challenges include:

• Limited Access to Banking Services: A significant portion of the Cambodian population remains unbanked, limiting their access to formal financial services.
• High Transaction Costs: Traditional banking systems can be expensive, particularly for small transactions and international remittances.
• Inefficient Payment Processes: Traditional payment processes can be slow and cumbersome, often involving multiple intermediaries.
• Lack of Transparency: The lack of transparency in traditional payment systems can lead to fraud and corruption.

Bakong addresses these challenges by providing a more accessible, affordable, efficient, and transparent payment solution. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency. Assistant Governor at the National Bank of Cambodia Serey Chea said that blockchain payments will enable greater financial control and remittance efficiency in an interview with CNBC published on Oct. 22. Chea said MoreIt leverages the power of blockchain to create a more inclusive and equitable financial system for all Cambodians.

Global Examples of Blockchain-Based Payment Systems

Cambodia is not alone in exploring the potential of blockchain for payment systems.Several other central banks and financial institutions around the world are experimenting with and implementing blockchain-based solutions.Here are a couple of notable examples:

• UBS Digital Cash: UBS has piloted a blockchain-based payment system called UBS Digital Cash to enhance cross-border transactions.The system supports payments in multiple currencies, including U.S. dollars, Swiss francs, and euros, using a private blockchain network.
• Bank of Canada Research: The Bank of Canada is actively researching blockchain as an alternative to current payment services.Their research aims to explore the potential benefits and risks of blockchain technology in the context of the Canadian financial system.

These examples demonstrate the growing recognition of blockchain's transformative potential in the financial sector and the increasing adoption of blockchain-based payment solutions globally.

The National Bank of Cambodia's Vision for the Future

The NBC’s commitment to blockchain technology extends beyond Bakong.The central bank recognizes the transformative potential of blockchain and other distributed ledger technologies (DLT) and is actively exploring new ways to leverage these technologies to improve the Cambodian financial system.

H.E.Dr.Chea Serey, Governor of the National Bank of Cambodia, has been a vocal advocate for the adoption of blockchain technology.She recently participated in a roundtable forum on Cross-Border Payment Rails, highlighting the importance of infrastructure roll-out and smooth customer journey in facilitating cross-border payments.

What are Blockchain Payments?Understanding the Core Concepts

To fully appreciate the significance of Bakong, it's important to understand the fundamental principles behind blockchain payments.

In a traditional bank payment system, approval is required from the banks where the sender and recipient of funds hold their accounts, along with confirmation from the payment system.This process involves multiple intermediaries and can be time-consuming and costly.Blockchain payments, on the other hand, eliminate the need for a central controlling body.

When using the blockchain, transactions are verified by a distributed network of computers, known as nodes.This decentralized approach enhances security and transparency, reducing the risk of fraud and censorship.

Addressing Potential Concerns and Challenges

While the potential benefits of blockchain payments are undeniable, it's important to acknowledge the potential concerns and challenges associated with their implementation:

• Scalability: Some blockchain networks can struggle to handle a large volume of transactions, leading to slower processing times and higher fees.
• Regulation: The regulatory landscape surrounding blockchain technology is still evolving, and uncertainty can hinder adoption.
• Interoperability: Ensuring interoperability between different blockchain networks and traditional payment systems is crucial for widespread adoption.
• Cybersecurity Risks: While blockchain is inherently secure, vulnerabilities in the underlying software or infrastructure can be exploited by hackers.

The NBC is actively working to address these challenges and mitigate the risks associated with blockchain technology.By implementing robust security measures, promoting regulatory clarity, and fostering collaboration among stakeholders, the NBC is paving the way for the responsible and sustainable adoption of blockchain payments in Cambodia.

The Economic Impact of Bakong on Cambodia's GDP

The sheer scale of Bakong's transaction volumes, representing 330% of Cambodia's GDP in 2025, underscores its profound impact on the national economy.This remarkable figure signifies that the platform is facilitating a significant portion of the country's economic activity, driving growth and creating new opportunities.

The increased efficiency and reduced costs associated with Bakong are freeing up resources that can be invested in other areas of the economy, such as infrastructure development, education, and healthcare.Furthermore, the platform's ability to facilitate international remittances is providing much-needed support to families across the country.

Future Outlook: The Continued Evolution of Blockchain Payments in Cambodia

The future of blockchain payments in Cambodia looks bright.As the technology matures and adoption continues to grow, we can expect to see even more innovative applications and use cases emerge.The NBC is committed to fostering a supportive regulatory environment that encourages innovation while protecting consumers and maintaining financial stability.

With its strong foundation and clear vision, Cambodia is well-positioned to become a leader in the adoption of blockchain technology in the financial sector.By empowering its citizens with greater financial control and efficiency, the NBC is paving the way for a more prosperous and inclusive future.

Conclusion: Key Takeaways and Future Implications

The Bank of Cambodia's embrace of blockchain technology, particularly through the Bakong payment system, signifies a monumental shift towards greater financial control and efficiency for its citizens.With transaction volumes reaching an astounding 330% of Cambodia’s GDP, Bakong has already demonstrated its transformative power.Assistant Governor Serey Chea's emphasis on enabling greater control over money through blockchain is not just a statement; it's a promise being fulfilled.

Key takeaways from this analysis include:

• Bakong, a blockchain-based payment system, is revolutionizing Cambodia's financial landscape.
• It empowers users with greater control over their funds, enhances transparency, and reduces remittance costs.
• The NBC is actively working to address the challenges associated with blockchain technology and promote its responsible adoption.
• Cambodia is poised to become a leader in the adoption of blockchain technology in the financial sector.

The future of finance is undoubtedly digital, and Cambodia is at the forefront of this transformation.As other nations observe the success of Bakong, we can expect to see a growing interest in blockchain-based payment systems around the world.This shift promises to create a more inclusive, efficient, and transparent financial system for all.

Are you ready to embrace the future of finance?Explore the possibilities of blockchain payments and discover how they can empower you with greater financial control.The time to act is now.