- Cambodia’s Bakong blockchain payment system processed transactions worth $104.81 billion in 2024, representing 330% of the country’s GDP with a 95% increase from the previous year.
- While often labeled as a CBDC, Bakong functions more like a tokenized deposit system with balances backed by commercial bank accounts, now Hosting approximately 30 million wallets—1.69 times Cambodia’s population.
- The platform is successfully promoting use of the Cambodian Riel, with Riel-denominated transactions now accounting for 49% of total transactions, up from 43% in early 2024, despite USD still dominating in value terms (70%).
Cambodia’s blockchain-based payment system Bakong continues its impressive growth trajectory, according to the latest annual report from the National Bank of Cambodia. The platform processed $104.81 billion in payments during 2024, a figure that represents 330% of the country’s gross domestic product and marks a 95% year-over-year increase in transaction value.
Despite being developed by Cambodia’s central bank, Bakong isn’t technically a central bank digital currency (CBDC). The system functions more like a tokenized deposit initiative, with Bakong balances backed by accounts at commercial banks rather than direct central bank liabilities. This structure allows payment providers to support thousands of individual wallets through just a few Bakong-linked bank accounts.
The platform now hosts approximately 30 million digital wallets—1.69 times greater than Cambodia’s population—while the actual number of accounts remains much lower at 642,500, having grown by just 7%. On the merchant side, about 4.5 million businesses now accept Bakong payments, facilitated by a standardized QR code system that supports multiple payment methods.
One of Bakong’s primary objectives has been increasing the usage of Cambodia’s local currency, the Riel, in an economy where approximately 80% of transactions have traditionally been conducted in US dollars. This initiative was spearheaded by Chea Serey, who launched Bakong before becoming Governor of the National Bank of Cambodia.
Interestingly, Bakong has boosted Riel adoption partly through international payment integrations with other Asian countries, as cross-border transactions typically require using the local currency. These connections likely reduce transaction costs, encouraging greater Riel usage in a country where remittances account for roughly 9% of the economy, with tourism contributing a similar percentage. Unlike some other emerging markets, the Riel has maintained relatively stable value for many years.
While the US dollar continues to dominate Bakong’s transaction value at 70%, the Riel now accounts for 49% of the total transaction count, up from 43% in the first half of 2024. This represents significant progress in the central bank’s de-dollarization strategy.
In 2024, Bakong facilitated 608.32 million transactions, with 299.32 million denominated in Riel—a remarkable 332% increase compared to 2023. Dollar-denominated transactions grew at a slower but still substantial rate of 133%.
The platform recently expanded its international capabilities through the second phase of its partnership with UnionPay International. While Bakong previously supported inbound payments from China via UnionPay, it now enables Cambodians to make outbound payments to China by scanning UnionPay and WeChat Pay barcodes directly from the Bakong app. This complements an earlier integration with Alipay, further enhancing the system’s cross-border functionality.
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