Chea Serey, the governor of the National Bank of Cambodia, announced that the digital currency Bakong will boost the use of the riel through cross-border QR code payments. Introduced in 2020, Bakong facilitates payments between Cambodia, Thailand, Laos, Vietnam, and China’s UnionPay, with plans to expand to India and Japan.
Despite over 80% of Cambodia’s economy using the U.S. dollar, authorities aim to increase the riel’s presence in digital transactions. By 2023, Bakong’s digital payments surged to $70 billion, nearly double Cambodia’s GDP. Unlike traditional CBDCs, Bakong is backed by both the riel and the U.S. dollar.
This initiative is pivotal for expanding the riel’s use and fostering financial inclusion. The central bank’s focus on integrating diverse technologies across countries ensures smoother international transactions and compliance with regulations.
Strategically, Bakong’s expansion enhances regional financial integration, promoting the riel’s stability and broader adoption.
