An official at the National Bank of Cambodia (NBC), Cambodia’s central bank, has indicated that the Southeast Asian nation has begun testing the use blockchain technology for payments over its borders.
An editorial by Cryptonewz has outlined the likelihood and reasoning behind Cambodia adopting a payment system powered by blockchain.
The article cited an interview by CNBC in which Serey Chea, Assistant Governor of the National Bank of Cambodia, revealed Cambodia has already started running experiments using blockchain to facilitate payments.
Chea notably voiced her own hopefulness that the ASEAN member could eventually implement the technology more broadly, explaining that it would improve the efficiency of payments and cut costs for cross-border transactions.
A reduction in transactional costs for Cambodians is needed as many of the country’s citizens work in nearby Malaysia and must send their earnings home on a regular basis. The remarks by Chea follow the NBC signing a Memorandum of Understanding (MoU) with Malaysia’s Maybank concerning the adoption of blockchain technology and the direct involvement of cross-border payments.
Cambodian citizens currently working in countries like Malaysia are subject to transactional fees of or exceeding 10%. By using blockchain open ledger technology, not only would such fees be significantly reduced but the processing time for sending money would also be lower.
Additionally, use of blockchain by Cambodia’s central bank is expected to provide it with greater control.
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