NBC governor Chea Serey met newly-appointed Rwandan ambassador to Cambodia Nkubito Manzi Bakuramutsa on March 13 at the central bank’s headquarters in Phnom Penh. NBC
Cambodia and Rwanda have committed to collaborating on cross-border payments, a move aimed at boosting trade and investment flows between the two nations.
The pledge was made during a meeting between Chea Serey, governor of the National Bank of Cambodia (NBC) and newly-appointed Rwandan ambassador to Cambodia Nkubito Manzi Bakuramutsa, on March 13 at the central bank’s headquarters in Phnom Penh.
Serey highlighted that the country’s economy continues to grow, with the banking and financial sector developing steadily.
She also briefed the ambassador on other sectors, noting the attractiveness of the government’s investment policy. She also highlighted that the country is promoting the use of its local currency, the riel, in economic activities.
Bakuramutsa expressed his appreciation and readiness to enhance cooperation between the two countries, particularly regarding the payment system.
A local delegation attended a financial technology (fintech) event in Rwanda from June 20-26 last year to showcase the revolutionary potential of Cambodian fintech innovations, foster cross-border collaboration and elevate the Kingdom’s fintech scene.
The delegation was led by the NBC and co-organised by the Cambodian Association of Finance and Technology (CAFT) and the Association of Banks in Cambodia (ABC).
At the event, CAFT chairman Remi Pell discussed the growth of mobile wallets and payment firms in Cambodia and the expected emergence of new players in regulatory technology (regtech), insurance technology (insurtech) and digital-only banking platforms, known as “neobanks”.
“Notably, the exponential growth of e-commerce and contactless transactions has significantly fostered the widespread adoption of digital payment solutions between merchants and consumers,” he said.
Pell emphasised the importance of blockchain technology and smart contracts in financial development but acknowledged the Kingdom’s shortage of essential resources, including specialists, innovators, solution providers, entrepreneurs and investors.
“There are immense opportunities in blockchain solutions, including upskilling and training programmes, the development of transparent smart-contract solutions and their application across various sectors such as finance, accounting and communication,” he stated.
At a seminar in Kampong Thom province in May, the NBC governor disclosed that the central bank is collaborating with countries in Asia, Africa, Latin America and Europe to expand the reach of payment systems that are fast, secure and cost-effective, to enhance cross-border economic activities.
Serey highlighted that Cambodia is already connected with Thailand and Malaysia through the NBC’s blockchain-based Bakong interbank payment system, with plans to extend links to Vietnam, Laos, Myanmar, China and India.
Japanese Prime Minister Fumio Kishida has praised the system as a “model” of international cooperation, specifically between the Cambodian central bank and the Japanese tech firm which developed it.
According to the NBC, Bakong, described as a quasi-central bank digital currency (CBDC), was launched on October 28, 2020, and developed by Japanese blockchain company Soramitsu Co Ltd. It was designed to improve interoperability, efficiency, financial inclusion and the ease of use of the Cambodian riel (KHR).
As of early December 2023, a total of 71 institutions have become members, with 52 already operational, reaching over 10 million customers and processing a total of 63 million transactions, as per the central bank.
