The National Bank of Cambodia (NBC) has embarked on an ambitious initiative to enhance payment options for travelers within and beyond Cambodia’s borders by launching the Bakong Tourists app, a blockchain-powered platform. This innovative application, designed to facilitate secure and efficient financial transactions, marks a significant step in NBC’s ongoing efforts to modernize the country’s payment systems and broaden its reach across the Asian region.
The Bakong Tourists app is designed to function not only within Cambodia but also in neighboring countries such as Thailand, Vietnam, and Laos. Moreover, the app is compatible with China’s UnionPay, thereby extending its utility to a broader range of users in the region. This strategic move reflects NBC’s commitment to providing Cambodian travelers with a reliable and versatile payment tool that can be used in various international settings.
Features and Capabilities of the Bakong Tourists App
The Bakong Tourists app comes equipped with a host of features aimed at making financial transactions more accessible and convenient for users. The app enables users to send and receive funds, conduct and track transactions between different banks, and convert funds between US dollars and the Cambodian riel. These capabilities are expected to provide significant benefits to both domestic and international travelers, who often face challenges when managing multiple currencies and navigating different banking systems.
Despite its many features, the Bakong Tourists app currently operates under certain limitations. At present, the app does not require users to complete a Know Your Customer (KYC) verification process, which has resulted in a daily transaction limit of $500. However, NBC has plans to increase this limit to $3,000 once the KYC system is implemented. This increase is anticipated to make the app even more appealing to travelers who require higher transaction capacities for their financial activities.
In terms of funding options, the Bakong Tourists app allows users to top up their accounts through local providers such as NBC itself, as well as hotels and travel agencies. As the app continues to expand its reach, NBC Governor Chi Seri has indicated that the app will soon include the ability to use international payment methods, including MasterCard and Visa. These enhancements are expected to further streamline the payment process for users and increase the app’s attractiveness to a broader audience.
Governor Seri has also revealed that NBC is working on agreements with Malaysia, expected to be finalized by late August, and South Korea, anticipated in September. These agreements are part of NBC’s broader strategy to extend the functionality and reach of the Bakong Tourists app, making it a key tool for facilitating international transactions in the region.
Building the Foundation for a Regional Payment Network
The Bakong Tourists app represents more than just a convenient payment tool; it is a critical component of NBC’s long-term vision to establish a regional payment system. This system is envisioned to extend beyond Cambodia’s immediate neighbors, eventually including countries such as India, China, Fiji, and the Solomon Islands. By laying the groundwork for this expansive network, NBC is positioning itself at the forefront of regional financial integration.
To bring this vision to life, NBC has partnered with Japanese blockchain company Soramitsu, a collaboration that began in 2020. Together, they have been working on developing the necessary blockchain solutions to support NBC’s initiatives. One of the notable outcomes of this partnership is the creation of Lao DLak, a central bank digital currency (CBDC) launched as a proof of concept in 2023. The success of these projects underscores NBC’s commitment to leveraging cutting-edge technology to create a seamless and efficient payment system for the region.
Conclusion: A Forward-Thinking Approach to Financial Modernization
NBC’s launch of the Bakong Tourists app is a significant milestone in its efforts to modernize the payment landscape in Cambodia and the surrounding region. By utilizing blockchain technology, NBC is not only simplifying financial transactions for travelers but also laying the foundation for a more integrated and efficient regional payment system. While the concept of a central bank digital currency (CBDC) may be met with skepticism by some, particularly within the crypto community, NBC’s approach is pragmatic, addressing the unique challenges faced by a country where credit card usage is limited, and the availability of ATMs is sparse.
The Bakong Tourists app has the potential to significantly improve the lives of Cambodian citizens and travelers alike by providing a reliable, secure, and user-friendly platform for managing financial transactions. As NBC continues to expand the app’s capabilities and reach, it is poised to become a key player in the development of a regional payment network that could transform the way financial transactions are conducted across Asia.