State cryptocurrencies, Bakong, Cambodia's new CBDC

State cryptocurrencies, Bakong, Cambodia's new CBDC

By Roberto D. | CryptoFarm | 31 Jan 2020


It's not in itself new, since the new Central Bank Digital Currency (CBDC) had already been launched on an experimental basis last July, however Chea Serey (general manager of NBC, the country's central bank) said that the system will become fully operational from this quarter; his name will be Bakong and Serey himself said that it will become the payment system of the country, that is, it will be the common currency in Cambodia, simplifying payments for everyone (banks, institutions, citizens) allowing anyone to operate on the same platform.

The ultimate goal is also to use it for cross-border payments, the last fundamental step to convert the country to the crypto-economy; it is not, as is typical for each CBDC, of ​​a decentralized currency built on blockchain, the Bakong in fact uses a DLT technology in which the role of validating nodes is covered by the same institutions and banking and financial authorities of the country.

The wallet will simply be attached to the current account of each citizen, to make the change between the new CBDC and the FIAT currency easy and within the reach of anyone; the reduction of costs and the possibility of carrying out transactions in real time are the aspects that make the digital currency ideal for replacing, in the long run, the cash that, to date, Cambodians have used in their daily lives.

 


Transactions are stored by the central bank itself, which therefore significantly reduces citizens' privacy compared to cash; the problem of transaction privacy, however, could easily be overcome by means of the integration between the CBDC and the cryptocurrency industry.

When the exchanges, centralized or decentralized that they are, or the hardware wallets themselves include support for the Bakong, it will also be possible to easily and easily exchange the digital state currency with any decentralized currency among the many available and, at that point, also turn to cryptocurrencies that guarantee high standards in terms of privacy (such as monero).

The issue of CBDCs, as we have been saying for some time, far from killing the decentralized cryptocurrency market, will inevitably end up strengthening it; although many countries are looking at these tools as a means of emptying decentralized currencies, such as bitcoins, with confidence and meaning, in reality the issue of CBDCs is, in my opinion, one of the fundamental steps for the mass adoption of BTC and other decentralized cryptocurrencies.

 

 


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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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