In an interview with CNBC, National Bank of Cambodia Deputy Governor Serey Chea said the country is experimenting with a blockchain payment system. She said she hopes that in the future, Cambodia will adopt the open ledger technology to increase efficiency and reduce transaction costs.
Cheah particularly emphasized the importance of blockchain technology for cross-border transactions, noting that while the country is also experimenting with blockchain payments in domestic retail, the main focus of blockchain payments will be sending and receiving payments from overseas.
The underlying logic
This makes a lot of sense for a country like Cambodia, as many Cambodian workers are employed in Malaysia and regularly conduct financial transactions with their home country. It also explains why a memorandum of understanding was signed between the National Bank of Cambodia and Malaysia’s Maybank for interbank transactions in Malaysia. Blockchain Technology Although the specific details of the cooperation have yet to be revealed, it is understood that the two banks have agreed to work together to realize cross-border blockchain payments.
As we all know, Cambodian workers have to pay at least 10% transaction fees to send money, which is a significant cost. Blockchain payments reduce the cost and significantly shorten the time required for transactions. Another benefit of blockchain adoption is that it provides greater control over money, which will help the country’s economy run more productively.
We saw success just a few months ago in July. Blockchain A pilot project was carried out by Union Bank of the Philippines, where cross-border payments from the Philippines to Singapore were made using blockchain and were found to be faster and more affordable compared to traditional systems.