Cambodia is launching a distributed ledger technology network for the country’s payment system. The new network is aimed at boosting the use of the local riel currency and cutting down the use of the U.S dollar. It will facilitate real-time payments, and the country hopes to drastically bring down the cost of payments.
While it will have many benefits for its users, the new payment’s primary goal is to reduce the use of the U.S. dollar. Serey Chea, the assistant governor of the National Bank of Cambodia said at a recent event that the U.S. dollar accounts for over 90% of the local payments. This makes Cambodia one of the most dollar-dependent economies in the world.
The DLT payment network is Cambodia’s best chance of cutting down the use of the dollar, and the central bank intends on exploiting it fully. Chea revealed that the regulator intends on launching it this year, “hopefully very soon.”