Cambodia is moving to a blockchain payment program that will end its dependence on small denomination Federal Reserve notes, but merchants fear accepting the notes now.
Cambodia is about to replace U.S. dollar dominance with its own national blockchain platform.
There are reports that by the end of 2020, the National Bank’s payment blockchain platform will start functioning in Cambodia. The Central Bank of Cambodia aims to improve the payments sector and displace the almighty US dollar from it.
A special blockchain-based platform allows consumers to make almost instant payments using a mobile application and QR codes. The Governor of the National Bank of Cambodia, Serei Chea, said that the main goal of the national blockchain network is to undermine the popularity of the US dollar.
“Cambodia is the most dollarized economy in the world. Over 90% of the economy is based on US dollars.”
Chea reported that the network has been under development for about 4–5 years and will be launched soon:
“We plan to start work in 2020, hopefully soon enough.”
Twelve banks are participating in the trials, and the National Bank expects all financial institutions in the country to voluntarily join the new platform. Cambodia’s payment block platform is designed so that the country’s banks, purse suppliers and banking clients can easily interact with each other.
Chea also reported that the National Bank has started developing a “cross-border payments project” in partnership with Maybank, Malaysia’s leading financial institution.
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