Cambodia launched its cryptocurrency whitepaper to compete with the hegemony of the Dollar in its nation
The National Bank of Cambodia published the cryptocurrency whitepaper, its upcoming blockchain-based payment system dubbed 'Project Bakong' this week. The central bank, which has been building the Bakong Project since 2017, sees its quasi-digital currency project as a high-tech revamp of the Khmer Riel, Cambodia's official currency, which has seen almost no competition as the Locals have favored the US dollar for decades.
The central bank said Bakong will challenge the dollar's reign by inducing Cambodians to pay via QR codes instead. And next to a mobile application, with a Hyperledger Iroha blockchain. The latter will facilitate real-time fund transfers between electronic wallets connected to your bank accounts.
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Project Bakong, the next sovereign cryptocurrency
That permissioned blockchain will operate between Bakong accounts and traditional accounts, record transactions on a distributed ledger, reach consensus through the “Other Consensus” block-voting hash-based algorithm, and process transactions in five seconds or less, according to the whitepaper.
«Transaction throughput is between 1.000 and 2.000 transactions per second«. According to the technical specifications, the central bank said in the white paper. «This suggests that there is a possibility that this project will be expanded«.
The bank said that the peer-to-peer nature of its system eliminates the inefficiencies of centralized clearinghouse models without users having to transact.
Since banks and individual users now join a DLT platform. Banks and users no longer face interconnectivity and interoperability problems.
Central Bank of Cambodia
Cambodian officials have been hesitant to label the Fiat-backed Bakong Project as a Central Bank Digital Currency (CBDC) in the past, instead of calling it a blockchain payments system. Users must load Riel into their Bakong accounts before they can transact with others. That is different from a natively digital CBDC.
Even so, the cryptocurrency whitepaper frames Bakong against the proliferation of CBDC projects in highly developed countries around the world. In the past, we have already seen sovereign cryptocurrencies fail, such as the Petro from Venezuela. Will Cambodians Succeed ?.
