Cambodia Accelerates Digital Currency Expansion as Cross-Border Payment System Reaches 12 Asian Nations

PHNOM PENH, Cambodia — Cambodia's central bank announced Tuesday a major expansion of its blockchain-based Bakong digital payment system, integrating four new international financial networks to facilitate instant cross-border remittances and trade transactions across 12 Asian nations.

Speaking at a financial technology forum in Phnom Penh, National Bank of Cambodia (NBC) Governor Chea Serey confirmed that the new cross-border corridors connect local commercial banks directly with financial institutions in Japan, South Korea, Singapore, and India. The move comes as financial authorities seek to lower transaction fees for overseas Cambodian workers, streamline regional supply chain payments, and further promote the usage of the Khmer Riel (KHR) in domestic and international commerce.

Launched initially as a unified retail payment gateway in 2020, the Bakong platform has grown into one of Southeast Asia's most prominent central bank digital currency (CBDC) frameworks. According to NBC data released during the briefing, the system processed over 350 million transactions valued at more than $60 billion during the first nine months of the year, representing a 28 percent increase compared to the same period in the previous year.

The expansion is expected to bring immediate relief to thousands of Cambodian migrant workers who rely on overseas remittances to support families back home. Historically, high fee structures and multi-day settlement delays through traditional wire channels reduced the net value of money sent across borders. Under the expanded Bakong framework, workers can execute direct wallet-to-wallet transfers with fixed fees averaging below 1 percent.

Commercial leaders in Phnom Penh welcomed the announcement, noting that instant digital settlement will significantly reduce foreign exchange volatility for small and medium-sized enterprises (SMEs) engaged in cross-border trade.

"Small businesses across the subregion often struggle with foreign exchange liquidity and delayed bank settlements," said Lim Heng, Vice President of the Cambodia Chamber of Commerce. "Expanding direct digital payment corridors removes intermediary costs and allows our merchants to settle trade invoices instantly using local currencies."

International financial analysts noted that the platform's success also serves a broader strategic objective: gradually increasing the circulation of the Khmer Riel in a historically dollarized economy. The central bank confirmed that all cross-border transactions routed through Bakong automatically offer preferential exchange rates for transactions executed in KHR, encouraging local businesses to price domestic goods and services in the national currency.

While the expansion marks a significant technological milestone, financial regulators acknowledged the growing necessity for robust cybersecurity defenses and strict anti-money laundering (AML) controls. As digital transaction volumes surge, international monitoring bodies have urged central banks across the Greater Mekong subregion to enhance oversight against potential cyber threats and fraudulent digital schemes.

To mitigate compliance risks, Governor Serey stated that the NBC has deployed upgraded automated compliance monitoring tools and partnered with regional cybersecurity agencies to audit cross-border transaction flows in real time.

"Rapid innovation in digital finance must be matched by equal rigor in regulatory supervision," Serey said. "Our priority is to build an inclusive financial ecosystem that protects consumer funds while maintaining the absolute stability and integrity of our national banking sector."

The NBC plans to roll out additional merchant features by early next year, including standardized cross-border QR code integration for incoming international tourists across Southeast Asia.