‘Electronic payment systems to enhance economic efficiency, financial inclusion and use of Riel’

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The National Bank of Cambodia has started implementing various policy measures to promote the use of riel in the economy based on market mechanisms. The use of riel has been facilitated through the development of electronic payment systems and other policies. For instance, ‘Fast Payment’, ‘Retail Pay’, ‘Bakong’ and other electronic payment systems have made the riel payments more convenient and with lower costs. Khmer Times caught up with NBC Governor Chea Chanto on the 42nd Anniversary of the Reintroduction of the Riel to know the measures that are put in place to enhance the popularity of national currency

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National Bank of Cambodia (NBC), payment wallets and digitalisation of banking services and opposition to cryptocurrency

Cryptocurrencies are forbidden in several countries because they are not issued and regulated by any government or public authority. In Cambodia, the NBC also does not recognise cryptocurrencies as forms of digital payment since they present as trading instruments with values which are fluctuating unexpectedly and unverifiable transactions. Therefore, we believe that cryptocurrency is exposed to numerous risks. Given the uncertainties and unforeseen risks, in 2017, NBC alerted and forbade banks and financial institutions from trading cryptocurrency activities. In addition, in 2018, NBC in cooperation with relevant authorities released a joint statement aimed at warning the public and forbidding financial institutions (FIs) to deal with any crypto activities.

 

In order to gradually shift from a cash-based economy to electronic payment, NBC has developed and modernised electronic payment system. The Bakong, a blockchain-based payment system, was introduced in 2020 to promote financial inclusion, address the issue of interconnectivity and interoperability across platforms of payment operators and support the ease of payments in local currency. NBC has also encouraged FIs to reap the benefits of technological advancement by introducing various digital financial services which are convenient, secure, and cost-effective for clients.

 

read more https://www.khmertimeskh.com/501044986/electronic-payment-systems-to-enhance-economic-efficiency-financial-inclusion-and-use-of-riel/