Cambodia’s Bakong Blockchain Transactions Hit 330% of GDP in 2024
LTB Cambodia’s Bakong Blockchain Surges to 330% of GDP in Transactions
Cambodia’s national blockchain-based payment system, Bakong, has soared to new heights, with transaction volumes reaching a staggering 330% of the country’s GDP in 2024.
- Bakong’s transaction volumes hit 330% of Cambodia’s GDP in 2024.
- Over 30 million wallets and 642,500 accounts registered.
- 4.5 million merchants now accept Bakong payments.
- Global digital payments market projected to reach $712 billion by 2033.
Launched in 2019 by the National Bank of Cambodia (NBC), Bakong has quickly become a cornerstone of the country’s financial infrastructure. Blockchain, a decentralized ledger of all transactions across a network known for its security and transparency, powers this system. In 2024 alone, Bakong processed $104.81 billion across 608 million transactions, marking a 95% increase from the previous year. This growth showcases the power of blockchain to drive economic activity and financial inclusion, but it’s not without its complexities.
Bakong’s reach is impressive, with over 30 million wallets and 642,500 accounts. Yet, the real story lies in its adoption by 4.5 million Cambodian merchants, who have embraced this platform. The success is driven by cheaper fees, quick transactions, and its ability to work with other systems, making it an attractive option for both consumers and businesses.
The NBC has been proactive in promoting Bakong, launching initiatives to boost its use among tourists and to encourage the use of the local currency, the Cambodian riel. In mid-2024, a mobile payment system was introduced specifically for tourists, aiming to make transactions easier and more accessible. Khieu Thy, president of the Khmer Angkor Tourist Guide Association, emphasized the importance of this move, stating,
“It is important that we encourage tourists to exchange for Khmer currency and use it directly, as it is easier. This also helps reinforce our sovereignty, territorial integrity, and national identity.”
This initiative is part of a broader effort to combat dollarization and strengthen national economic sovereignty. Bakong’s impact on financial inclusion is significant, as it integrates into the financial system through a tokenized deposit system backed by traditional bank accounts, setting it apart from typical central bank digital currencies (CBDCs).
While Bakong’s success is undeniable, it’s not without its challenges. The digital payment industry globally faces hurdles such as lack of trust and financial literacy. Without trust, Bakong’s future is as shaky as a house of cards. However, the global digital payments market is projected to reach $712 billion by 2033, with a compound annual growth rate (CAGR) of 21.80%. This growth is driven by factors like increasing mobile phone penetration, financial inclusion initiatives, and the rise of e-commerce. GDP (Gross Domestic Product) represents the total value of all goods and services produced in a country, and understanding it is crucial for gauging Bakong’s impact.
As we celebrate Bakong’s achievements, it’s important to keep a balanced perspective. The platform’s success is a beacon of what’s possible with blockchain technology, but it also serves as a reminder of the work that remains to be done. From enhancing financial literacy to addressing security concerns, the journey ahead is as challenging as it is exciting.
Key Questions and Takeaways
What is Bakong and how has it performed recently?
Bakong is Cambodia’s national blockchain-based payment system, which has seen its transaction volumes reach 330% of the country’s GDP in 2024, marking a significant increase from previous years.
How is Bakong promoting the use of the Cambodian riel?
Bakong promotes the use of the Cambodian riel through initiatives like processing cross-border transactions in riels and encouraging tourists to transact in local currency rather than the U.S. dollar.
What drives the growth of the digital payment market globally?
The growth of the digital payment market globally is driven by factors such as increasing mobile phone penetration, financial inclusion initiatives, and the rise of e-commerce.
What challenges does the digital payment industry face?
The digital payment industry faces challenges such as lack of trust and financial literacy, which hinder full adoption of digital payment solutions.
What is the projected market value of digital payments by 2033?
The projected market value of digital payments by 2033 is $712 billion, with a compound annual growth rate of 21.80%.
In the world of cryptocurrency and blockchain, Bakong’s story is compelling. It’s a reminder that while Bitcoin and other cryptocurrencies continue to push the boundaries of what’s possible, national blockchain initiatives like Bakong are also playing a crucial role in shaping the future of finance. As we move forward, it’s essential to keep an eye on these developments, understanding both their potential and their pitfalls.
Bakong’s success aligns with the philosophy of effective accelerationism, pushing forward technological and economic progress. Yet, as a Bitcoin maximalist might argue, the true essence of decentralization and financial freedom lies in cryptocurrencies like Bitcoin. While Bakong serves a unique role in Cambodia’s financial ecosystem, it’s important to recognize the diverse roles that different cryptocurrencies and blockchain projects play in the broader financial revolution.
As other blockchain projects look to Bakong’s success, they might learn valuable lessons on how to drive adoption and integrate with existing financial systems. Bakong’s journey underscores the importance of balancing innovation with practicality, driving us toward a more inclusive and efficient financial future.
