Hyperledger Case Studies The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha

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	The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha Hyperledger

The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha

Hyperledger

Technology Category	Application Infrastructure & Middleware - Blockchain Functional Applications - Remote Monitoring & Control Systems
Applicable Industries	Finance & Insurance
Applicable Functions	Business Operation
Use Cases	Asset Health Management (AHM) Machine to Machine Payments
Services	Software Design & Engineering Services System Integration
Challenge	In Cambodia, 78% of the population does not have a bank account, yet over half own a smartphone. Despite the stability of the native currency, the Khmer riel, most transactions are conducted in American dollars. The National Bank of Cambodia (NBC) wanted to modernize the country's retail payments system, promote the use of the national currency, and reach the unbanked population. The existing banking systems used by various banks and third parties often had compatibility issues, leading to inefficiencies. The NBC was interested in exploring whether a blockchain-based system could handle transactions faster and at a lower cost, thereby promoting wider use of the riel. Read More
About Customer	The National Bank of Cambodia (NBC) is the central bank of Cambodia. It is the monetary and supervisory authority of the country, with the mission to determine and direct monetary policy aimed at maintaining price stability to facilitate economic development within the framework of the kingdom's economic and financial policy. As the monetary authority, the NBC is the sole issuer of the Khmer riel, the national currency. As the supervisory authority, the NBC has the authority to license, delicense, regulate, and supervise banks and financial institutions in Cambodia. Read More
Solution	The NBC partnered with blockchain developer experts, Soramitsu, to create a fiat-backed digital currency using the Hyperledger Iroha blockchain framework. The project, named Bakong, allows individuals to transfer money and make purchases with a simple smartphone app. Merchants gain a fast, cashless, and secure payments system, and banks can perform interbank transfers at a much lower cost. The system was designed to be secure, with multiple security reviews conducted by third-party cybersecurity testing firms. The Bakong system was tested in a soft launch in 2019, with more than 10,000 users participating. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Blockchain

Functional Applications - Remote Monitoring & Control Systems

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Use Cases

Asset Health Management (AHM)

Machine to Machine Payments

Services

Software Design & Engineering Services

System Integration

Challenge

In Cambodia, 78% of the population does not have a bank account, yet over half own a smartphone. Despite the stability of the native currency, the Khmer riel, most transactions are conducted in American dollars. The National Bank of Cambodia (NBC) wanted to modernize the country's retail payments system, promote the use of the national currency, and reach the unbanked population. The existing banking systems used by various banks and third parties often had compatibility issues, leading to inefficiencies. The NBC was interested in exploring whether a blockchain-based system could handle transactions faster and at a lower cost, thereby promoting wider use of the riel.

About Customer

The National Bank of Cambodia (NBC) is the central bank of Cambodia. It is the monetary and supervisory authority of the country, with the mission to determine and direct monetary policy aimed at maintaining price stability to facilitate economic development within the framework of the kingdom's economic and financial policy. As the monetary authority, the NBC is the sole issuer of the Khmer riel, the national currency. As the supervisory authority, the NBC has the authority to license, delicense, regulate, and supervise banks and financial institutions in Cambodia.

Solution

The NBC partnered with blockchain developer experts, Soramitsu, to create a fiat-backed digital currency using the Hyperledger Iroha blockchain framework. The project, named Bakong, allows individuals to transfer money and make purchases with a simple smartphone app. Merchants gain a fast, cashless, and secure payments system, and banks can perform interbank transfers at a much lower cost. The system was designed to be secure, with multiple security reviews conducted by third-party cybersecurity testing firms. The Bakong system was tested in a soft launch in 2019, with more than 10,000 users participating.

Impact #1	The Bakong system passed all strenuous security reviews and was ready for production testing.
Impact #2	The system provides modern interactions, including mobile apps for Android and iOS.
Impact #3	New APIs help banks and other payment providers to integrate their core systems, internet banking, and mobile payment apps with the platform.

Impact #1

The Bakong system passed all strenuous security reviews and was ready for production testing.

Impact #2

The system provides modern interactions, including mobile apps for Android and iOS.

Impact #3

New APIs help banks and other payment providers to integrate their core systems, internet banking, and mobile payment apps with the platform.

Benefit #1	During a pilot, a network of 16 banks supported 10,000+ users.
Benefit #2	Retail throughput up to 2,000 transactions per second.
Benefit #3	Interbank transfers improved from twice-daily batches to 5 seconds or less.

Benefit #1

During a pilot, a network of 16 banks supported 10,000+ users.

Benefit #2

Retail throughput up to 2,000 transactions per second.

Benefit #3

Interbank transfers improved from twice-daily batches to 5 seconds or less.

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Overview

The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha

Operational Impact

Quantitative Benefit