Cambodia is taking the lead in making cryptocurrency a part of the mainstream. It has announced that its own digital payments blockchain will be launched in early 2020. The country previously conducted a test launch last July.
The Bakong is the cryptocurrency that was created by the National Bank of Cambodia. It is a type of digital currency that is labeled as a central bank digital currency, or CBDC. Bakong is being hailed as an official payment system for the Cambodian government. Many will be watching the experiment to see if it succeeds or fails. A successful run would perhaps inspire more countries to pursue similar projects.
Officials of the Cambodian government have stated that they want to create a centralized payment platform. Those who use it would be able to make instant payments. There would be no need for those making the payments to use the same banking institution. Cross border payments could also be enabled on the Bakong network at some point.
There are numerous advantages that are being touted by the developers of the Bakong. One of the most significant is the integration of a cryptocurrency software wallet with a traditional bank account. This would allow for seamless switching between fiat and digital currency.
The creation of the Bakong network represents something of a change for the Cambodian government. It has signaled in the past that it is not eager to embrace cryptocurrency. Cambodia imposed strict licensing requirements on crypto exchanges and other cryptocurrency businesses.
Most think that the creation of the Bakong digital payment system will help more people in Cambodia to accept cryptocurrency as a valid alternative to fiat currencies. Throughout the world cryptocurrencies are still struggling to gain widespread acceptance. Some tokens such as Bitcoin and Ethereum have managed to sustain their popularity while financial institutions continue to weigh the benefits of blockchain technology.