In a strategic move to bolster its tourism sector and embrace technological innovation, Cambodia is embarking on an initiative to diversify payment options for tourists by forging partnerships in the realm of blockchain-based central bank digital currency (CBDC). This strategic endeavor aligns with Cambodia’s broader vision of modernizing its tourism sector, recognizing its pivotal role as one of the four main pillars propelling the nation’s economy.
The initial three quarters of 2023 witnessed a remarkable surge in international tourist arrivals in Cambodia, with figures nearly quadrupling compared to the previous year, as reported by the country’s tourism sector. This upswing underscores the critical need to enhance payment systems for local merchants, particularly in the realm of mobile payments, to cater effectively to the burgeoning number of international visitors.
Playing a pivotal role in these digital currency advancements is the National Bank of Cambodia (NBC). The central bank has taken proactive measures, enabling tourists to utilize their e-wallets linked to Khmer Riel bank accounts for seamless payments at any KHQR merchant in Cambodia. The KHQR system, inaugurated by NBC in mid-2022, serves as a versatile platform for both domestic retail transactions and cross-border dealings within ASEAN countries. It utilizes a unified QR code compatible with various mobile banking applications and is operated by Bakong.
Furthering the digital currency landscape, Bakong CBDC users who meet comprehensive Know Your Customer (KYC) criteria, coupled with Khmer Riel bank account holders, can now conduct transactions at Alipay+ global merchant locations using local wallets and apps supported by NBC. This strategic move aims to encourage the utilization of the local currency and foster a seamless financial ecosystem.
Dr. Chea Serey, Governor of NBC, expressed optimism about the initiative, noting, “This simplicity of making payments provides merchants with a boost in revenue, helping to stimulate economic activity.” Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+, Ant International, emphasized the added convenience for tourists and the facilitation of easier shopping at local businesses, particularly micro-merchants.
Cambodia’s transformative approach to payment infrastructure not only aims to enhance the experience for international tourists but also seeks to support local businesses in the dynamic landscape of the evolving digital economy.
