Currency Complexity in Cambodia: Cash and Bakong, Riel and Dollar

A new paper published by the MPRA (Munich Personal RePEc Archive) reviews possible changes to cash circulation governance in Cambodia, drawing on lessons from a study of four other central bank systems [1]. The paper offers useful information on managing digital and physical currency systems, how you can learn from the experience of very different central banks, the importance and role of operational governance capacity, and when to issue Central Bank Digital Currencies (CBDC).

The National Bank of Cambodia (NBC) wants to increase riel circulation meaningfully, build a trusted domestic currency and sustain that trust at the same time as increasing the use of Cambodia's digital payment system, the Bakong. A key element of this is reducing the use of the dollar.