Cambodia`s Central Bank Uses Blockchain For Public Payment System

Cambodia`s Central Bank Uses Blockchain For Public Payment System

The National Bank of Cambodia is working on a blockchain payment system in collaboration with Japanese industry start-up Soramitsu. The central ban

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The National Bank of Cambodia is working on a blockchain payment system in collaboration with Japanese industry start-up Soramitsu.

The central bank and Soramitsu have signed a co-development agreement to study and contribute to the open-source development of Hyperledger Iroha, a blockchain project that has been first developed by the Japanese company, Iroha. The latter received an incubation status by Hyperledger in November last year.

As stated in press releases, the National Bank of Cambodia, the country`s central bank and financial regulator is dedicated to exploring “new payment infrastructure”.

“The application of information technology to finance is at a historical turning point.”, said Kazumasa Miyazawa, operating chief at Soramitsu.

“Through our work with the National Bank of Cambodia, we will be able to take the first step toward creating a more efficient payment infrastructure, which we hope to expand globally in the future.”, the executive elaborated.

Cambodia is now not very modern in terms of financial infrastructure for commercial banking. ATMs, for example, are reportedly not so easily accessible. In the meantime, a 2016 study found that 48% of Cambodians owned at least one smartphone.

This was said to a be an increase of 21% from 2015. The use of affordable technology is one of the factors that prompts the Cambodian central bank to look into low-cost payment infrastructure.

Cambodia is not the only country whose central bank actively explores the possible applications of blockchain technology. The central banks of China, England, Australia, Singapore and Swedon are among the other international banks who see the potential of blockchain.

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