Cambodia`s Central Bank Plans Blockchain Tests

Cambodia`s Central Bank Plans Blockchain Tests

Cambodia`s central bank is reportedly using blockchain technology to make interbank payments, while hinting at a cashless system for the entire economy.

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Cambodia`s central bank is reportedly using blockchain technology to make interbank payments, while hinting at a cashless system for the entire economy.

Earlier this year, the National Bank of Cambodia (NBC) announced that it is working with Japanese technology company and blockchain expert Soramitsu. The project was intended towards the design of a public system over a blockchain for its citizens.

According to a press release quoted in cryptocoinnews.com, the goal was to develop a “new payment infrastructure”.

Soramitsu has developed the Iroha blockchain platform, a smart-contracts-enabled ledger that allows permissioned parties to make transactions between each other. As the online media noted, Iroha is part of the open-source Hyperledger project that is led by the Linux Foundation.

While the technology can also be used for cryptocurrencies like ethereum, NBC director-general Chea Serey, explained that it would not be used to support any type of cryptocurrency for now. By contrast, it would be employed to reduce costs associated with interbank lending, as the Phnom Penh Post (phnompenhpost.com) wrote in a recent publication.

“We expect the new technology to provide smooth, efficient, safe and affordable interbank transactions which will ultimately benefit end users.”, as she told the online newspaper in an email.

“At this stage we will focus on the operational functionality of the system, but we believe the system can further be customized with application development to benefit the [central] bank’s monetary policy, including the use of the local currency.”, as  Serey elaborated on the subject.

She pointed out that NBC`s aim is not to be a pioneer in the adoptation of blockchain technology. Still, it is exploring ways to make Cambodia`s monetary policy more independent from the US dollar.

“[This] technology moves very fast and we are open to explore any platforms suitable for Cambodia’s situation.”, as she told phnompenhpost.com.

She commented that a cashless system is less costly and more transparent for the whole economy. It is to be followed whether and how NBC will try to realize the concept in practice.

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