Cambodia launches a blockchain platform to displace the dollar
The director general of the National Bank of Cambodia, Serey Chea , announced that he will launch a distributed accounting technology (DLT) network to enable greater interoperability in the payments sector within the country . Chea said it will start operating by the end of the year, and that its main objective is to gain ground on the US dollar .
The platform will seek to facilitate the transaction between banks , suppliers wallets electronic and banking customers of the country , who may make payments so instantly through the platform, using a mobile app and QR code .
There are currently 12 banks participating in testing the system, but the government expects all financial institutions to end up joining the platform on a voluntary basis .
According to Chea, Cambodia is one of the most dollarized economies in the world , with more than 90% of its financial system based on the US currency. Chea remarked that the use of the local currency - the Cambodian riel - is minimal and the reason "is more psychological than economic."
Although the Central Bank of the Asian country recognized that the majority of the countries that face the dollar present weak macroeconomic factors, they believe that the fundamentals of Cambodia are solid to head towards the challenge . "We have a very stable exchange rate, a very low inflation rate and a very good economic outlook," said Chea , who is also a political assistant to Prime Minister Hun Sen.
In addition, according to surveys carried out by the financial entity, the main reason for the lack of domestic use of the rial is its inability to carry out daily transactions. The dollar equals 4,000 rails. This type of exchange is one of the main factors to drive the adoption of a digital payment system . In this sense, Chea assured:
"We thought that if we were going to make the payment electronically, then people wouldn't have to worry too much about the number of zeros and the hassles of carrying lots of bills in their pocket."