Logo of Phnom Penh Post newspaper Phnom Penh Post - NBC signs blockchain agreement

NBC signs blockchain agreement

Content image - Phnom Penh Post
A street view of the National Bank of Cambodia headquarters in Phnom Penh. Heng Chivoan

NBC signs blockchain agreement

The National Bank of Cambodia (NBC) has signed an agreement with a Japanese firm to develop a blockchain-based payment system that could potentially allow for the regulated usage of a cryptocurrency, which would eliminate the use of formal financial institutions to send and receive money.

According to an announcement on Friday from the Japanese financial technology firm Soramitsu Co, the company signed a partnership agreement with the NBC to study the possible implementation of a blockchain-based open-development software known as Hyperledger Iroha, a product backed by the Linux Foundation, a US-based company that distributs the ledger technology program.

A distributed ledger, also known as a blockchain, allows for the use of digital currencies such as bitcoin, but provides greater verification safeguards for transmitting digital assets and currencies. Based on open-source software, the technology claims to be more robust in preventing cyberattacks by creating a shared ledger that is recorded by all individuals or institutions that access the network.

The central bank could not be reached for comment yesterday about the scale of the agreement or its level of commitment towards its implementation. Nevertheless, the NBC’s commitment joins a growing rank of countries that include central banks from China, England, Australia, Singapore and Sweden that are actively investigating how the technology can be incorporated.

“Through our work with the National Bank of Cambodia, we will be able to take the first step towards creating a more efficient payment infrastructure, which we hope to expand globally in the future,” Kazumasa Miyazawa, CEO of Soramitsu, said in the announcement.

The technology would bypass the need for ATMs and formal financial institutions for customers by allowing them to send and receive funds directly, while central banks and physical financial institutions could use it for streamlined interbank lending activity, according to Martin Kendrik, the founder of the Cambodian Cryptocurrency, Bitcoin and Blockchain Community.

“While I am a bit surprised that Cambodia is potentially pursuing blockchains so quickly, it is good for the central bank to be progressive and not regressive and follow models like Japan and Singapore,” he said. “If Cambodia invests in this technology, it would put them in a strong position to insulate themselves from external currency shocks.”

MOST VIEWED

  • Second Hungary business forum set for H2

    Cambodia has asked Hungary to provide GSP- (Generalised System of Preferences) Plus facilities for when the Kingdom sheds its least-developed country (LDC) label, as the two countries prepare to hold a second business forum in the second half (H2) of this year to expand trade

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports

  • CPP sets out five primary strategic goals for 2023-28

    The Cambodian People’s Party (CPP) on January 29 concluded its two-day extraordinary congress, setting the party’s priority goals for 2023-2028. The ruling party’s congress was attended by more than 3,000 members from across the Kingdom, including the members of the permanent and central committees,

  • Nearly 50 states join Kun Khmer Federation, all set for training

    In a little over a week, the Kun Khmer International Federation (KKIF) has accepted membership requests from 20 new nations, in addition to the exiting 29. The sudden influx of international recognition stems from the Kingdom’s successful introduction of Kun Khmer to the 32nd Souheast Asian (