Asia’s central banks have forged ahead of the rest of the world in the development of central bank digital currencies (CBDCs). Unlike the digital currencies already in circulation, which have been developed by private companies, these originate from the central bank themselves. As well as bringing legitimacy to a new payment method, CBDCs are also seen as a way to take back control over their fiat currencies.
The National Bank of Cambodia rolled out its CBDC during 2020. For a country with a majority unbanked population and a large diaspora sending money back home, the country had to overcome many challenges to move to a digital economy. With the release of the digital riel, called Bakong, the hope is to bring more people into the formal banking sphere and provide a cheaper and safer way for Cambodia’s overseas workers to send remittances.
