Cambodia officially launches digital currency backed by central bank

Cambodia officially launched on Wednesday a central bank-backed digital currency that draws on blockchain technology designed by a Japanese company.

The e-money “Bakong”, an initiative of the National Bank of Cambodia, joins a very small group of digital currencies backed by central banks that have gone fully operational.

Bakong, which supports transactions in the dollar and riel, the Cambodian currency, is expected to help Cambodians make payments and transfer money between individuals using their smartphones.

The e-money can be used through the mobile app installed on a smartphone. While the number of Cambodians who have traditional bank accounts is limited, smartphones have reached every corner of the Southeast Asian country.

At Wednesday’s launch event in the capital Phnom Penh, Chea Serey, director general of central banking at the National Bank of Cambodia,…