The Cambodian central bank will set up a Distributed Registration Technology (DLT) network to enable better interoperability in the country’s payment sector and deal with the almighty US dollar.
The With a mobile application and QR codes, consumers can pay almost immediately via the platform.
During the consensus that was distributed on May 11, the deputy governor and director general of the National Bank of Cambodia Serey Chea revealed that the DLT network’s main goal was to undermine the popularity of the US dollar..
“Cambodia is probably the most dollarized economy in the world. The whole financial system or indeed our entire economy, [más del] 90 percent […] is based on US dollars“he said.
Preparation for the start
Chea said that The DLT-based payment network has been developing for four or five years and will be launched soon: “We plan to go live in 2020, hopefully very soon.”
There are 12 participating banks that are testing the platform, and All of the country’s financial institutions are expected to volunteer to join the platform.
The platform Cambodia DLT payment to facilitate transactions for Cambodian banks, e-purse providers and bank customers.
He also announced that Cambodia has started to develop a “cross-border payment project” in collaboration with Maybank, a large Malaysian financial institution, Intended for transfers from migrant workers.
DLT will undermine dollar penetration
Chea said there is no good reason for the country to continue accepting the dollar.
Chea explained that “The use of the local currency is very low and the reason is more psychological than economic.” argue that most countries exposed to “dollarization” have weak macroeconomic factors, but:
“In the case of Cambodia, all of our foundations are strong. We have a very stable exchange rate, a very low inflation rate and very good economic prospects. ”
From zero to hero
Central bank surveys suggest this The inability to carry out daily transactions with Cambodian rail is the main reason for the lack of domestic use.
“One US dollar equals 4,000 KHR. If you spend on something worth $ 10 you will have to pay 40,000 KHR rolls, and if the value increases there will be more zeros. […] Given our survey, this makes life more complicated for many users. ”
Chea added: “We think so If we did the payment electronically, people wouldn’t have to worry so much about the number of zeros and the inconvenience of having a lot of bills in our pockets. “.