{"id":248484,"date":"2020-01-31T09:32:03","date_gmt":"2020-01-31T14:32:03","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=248484"},"modified":"2023-06-17T14:25:25","modified_gmt":"2023-06-17T14:25:25","slug":"cambodia-preparing-to-launch-cbdc-trials-already-in-motion","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/cambodia-preparing-to-launch-cbdc-trials-already-in-motion","title":{"rendered":"Cambodia Preparing to Launch CBDC, Trials Already in Motion"},"content":{"rendered":"

The National Bank of Cambodia is preparing to launch a new central bank digital currency<\/a> (CBDC) called Bakong. The bank had started testing the currency in July 2019. Now it expects to launch the currency in the next few weeks fully.<\/p>\n

Big announcement<\/h2>\n

According to the director-general of the National Bank of Cambodia, Chea Serey, the new cryptocurrency system will be operations in the ongoing fiscal quarter, calling Bakong \u201cthe national payment gateway for Cambodia.\u201d<\/p>\n

\"Cambodia<\/a><\/p>\n

The new cryptocurrency will help payments companies huddle together on the same platform. This will make payments made by end-users easier. They will find it simpler to transfer money to each other, without worrying about the organizations they bank with. The country is also planning to start a cross border payment system using Bakong.<\/p>\n

How is Bakong different?<\/h2>\n

Bakong is an implementation of blockchain technology that allows central banks\/governments to enter the crypto space. The world has long discussed the possibilities of a central bank digital currencies, but most major economies are still mulling over the prospects of such a coin. France and China are the two largest economies where a CBDC is being discussed with great enthusiasm.<\/p>\n

Bakong will be a closed system, but it will be backed by Cambodia\u2019s banking system and its central bank. Every user will get a software wallet linked to their bank account which will give them new ways to interact with hard currency. The transactions on the system will be made in real-time and the central bank will store all accounts of money movement in a centralized record.<\/p>\n

This is a far cry from other popular digital currencies like Bitcoin<\/a>, which depend on a completely decentralized and open system. No single organization keeps records of all transactions or acts as a guardian\/monitor of accounts. Moreover, the Bitcoin system is completely detached from the traditional banking systems. Cambodia\u2019s move to create a CBDC will help in improving awareness and demand for digital coins.<\/p>\n

Read more:\u00a0<\/strong><\/p>\n