Central banks worldwide have been actively exploring innovations in financial infrastructure, with blockchain technology emerging as a key area of experimentation. While a comprehensive, long-term evaluation is necessary to assess the viability and systemic implications of such developments, Cambodia’s experience offers valuable insights. As policymakers and regulators in various jurisdictions seek to modernise their payment ecosystems, the Cambodian case provides a critical reference point for understanding the practical implementation, operational challenges, and broader economic impact of blockchain-enabled financial systems. The National Bank of Cambodia’s latest annual report provides an interesting perspective on the rapid evolution of digital finance, particularly through the expansion of the Bakong payment system. In 2024 alone, Bakong facilitated transactions worth US$ 104.81 billion—an extraordinary 330 percent of Cambodia’s GDP. This figure not only underscores the system’s growing importance but also signals a fundamental shift in the country’s financial architecture, where digital payments are increasingly complimenting traditional banking channels.
Cambodia’s Digital Leap: Blockchain-Based Finance (Sauradeep Bag, Observer Research Foundation)
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