A new report published by the World Economic Forum (WEF) has indicated that the National Bank of Cambodia (NBC) will be the world’s first central bank to use blockchain technology in its payment systems, with the timeframe for the implementation set for this year.
BeInCrypto reported that the NBC has been experimenting with the applications of the distributed ledger technology (DLT) since 2017. The central bank announced that it is starting with pilot implementation of the new payment system across 10 bank branches, with plans for mass adoption later this year.
According to the WEF, blockchain can address several issues related to banking in Cambodia. Blockchain technology can directly serve unbanked citizens and connect them with bank services through smartphone applications. Moreover, as many existing private payment apps in the country are not aligned with the central bank, the cashless payment system has been fragmented.
A blockchain platform would solve both of these issues, thus explaining the enthusiasm of the NBC to roll out the new system.
The WEF report also indicated that more than 40 banks worldwide have expressed interest in adopting blockchain technology or offering a national cryptocurrency or central bank digital currency (CBDC) which proponents believe would greatly improve the efficiency of the overall banking system.
These banks include the Bank of Canada, the Bank of England, and the Monetary Authority of Singapore.
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