Bakong is being developed as a blockchain-based, peer-to-peer platform that will have its own specially designed cryptocurrency. Unlike most blockchain-driven cryptocurrencies, Bakong is a closed system that is backed by banking authorities.
A software wallet is linked to the user’s bank account, which allows them to interact easily with hard currency. The system will support real-time transactions and the National Bank of Cambodia will store centralised records of the transactions, suggesting that all payments will be fully traceable, making the system harder for exploitation.
The fact that the cryptocurrency is being backed by the Cambodian banking authorities makes it unique as most currencies are not backed by central agencies, and are hence more prone to being vulnerable.
Chea Serey, the director-general of the National Bank of Cambodia said, “Bakong will play a central role in bringing all players in the payment space in Cambodia under the same platform.”
This move will hopefully make it easier for users to pay each other regardless of the banks they use. Though the system was initially designed for domestic payments in Cambodia, the National Bank of Cambodia hopes to add a cross-border payment function.
Bakong aims to create financially inclusive ecosystems that all the stakeholders in the industry can benefit from. The system already has the support of 11 national banks, and more are expected to join.