Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»EXCHANGE NEWS»Central Bank of Cambodia promotes use of riel through Bakong digital currency system
EXCHANGE NEWS

Central Bank of Cambodia promotes use of riel through Bakong digital currency system

By Crypto FlexsMay 28, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Central Bank of Cambodia promotes use of riel through Bakong digital currency system
Share
Facebook Twitter LinkedIn Pinterest Email

A key strategy to increase the use of Cambodia’s local currency is to facilitate cross-border transactions in riels, facilitated by the Bakong digital financial system.

Cambodia’s central bank is working to encourage more frequent use of the local currency, the riel. It does this using a digital financial system called Bakong. The plan aims to reduce dependence on foreign currencies such as the US dollar and promote the use of the riel within the country’s economy.

Bakong: Facilitating Cross-Border Trade in Riel

According to Central Bank of Cambodia Governor Chea Serey in an interview with Nikkel Asia, cross-border QR code payments through Bakong will promote the use of local currency, further improving the value of the riel and reducing the value of the riel in the economy, given that more than 80% of transactions are conducted in US dollars. The US dollar accounts for a very large portion.

A key strategy to increase the use of Cambodia’s local currency is to facilitate cross-border transactions in riels, facilitated by the Bakong digital financial system. Through this system, QR code-based payments between neighboring countries such as Cambodia, Thailand, Laos, and Vietnam are possible, as well as transactions using China’s UnionPay.

Central banks in Asian countries are therefore aiming to encourage merchants to conduct business in their local currency by facilitating cross-border riel transactions. Therefore, the circulation and adoption of riel will increase within Cambodia and its borders. Serey added that these efforts are primarily aimed at encouraging the use of riel. Therefore, she did not use her executive powers to make it mandatory for people to use their local currency. The central bank aims to expand cross-border capabilities to India as early as June and is also in discussions with the Japanese government.

Reduce dollar dominance and achieve economic independence

The country’s goal in promoting the riel is to achieve greater economic independence and control over monetary policy. So Bakong is considered a tool, but not the only solution. The government also pays taxes and civil servant salaries in riel, further supporting its goal of promoting the use of the local currency.

Since its launch in 2020, the Bakong system has been undergoing continuous development to achieve its goal of simplifying payments for both individuals and businesses. Unlike other central bank digital currencies (CBDCs) that represent a single currency, Bakong is backed by the Cambodian Riel (KHR) and the United States Dollar (USD). The total amount of payments made through virtual commerce systems amounts to $70 billion, which is almost twice Cambodia’s GDP. In 2023, Riel trading volume alone will reach $20 billion of the total value, more than double the 2022 figure.

Although Bakong has experienced steady growth, Serey admits there are still some challenges to overcome, including managing capital flow and ensuring an appropriate client identification process for users. The governor also commented on digital currencies in general, saying that the internationalization of digital currencies such as China’s e-CNY still has a long way to go.

next

Currencies, Fintech News, Market News, News

thank you!

You have successfully joined our subscriber list.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin prices return to green -building exercise for more profits

June 26, 2025

Dogecoin (DOGE) after collision

June 23, 2025

Litecoin Key Support in Focus Price Eye Brake Out Determination

June 20, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

POTUS, SEC Change Make Solana ETF Possible: Balchunas

June 28, 2024

Cryptocurrency losses reached $67 million in February, increasing annual losses to $200 million – Immunefi

March 1, 2024

Bitcoin Spot ETF Approval Could Be a ‘News Selling’ Event: CryptoQuant

December 28, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.