Khmer Riel Gains Ground in Digital Economy
On the busy streets of Phnom Penh, a quiet financial shift is unfolding as smartphones replace cash in everyday transactions. From morning coffee runs to market shopping, more Cambodians are turning to Bakong, the country’s homegrown digital payment system. This transformation is answering a critical question for Cambodia’s economy: the Khmer Riel is not only surviving in a highly dollarised system, it is gaining real momentum.
What was once seen mainly as a symbol of national identity is now becoming a practical and increasingly preferred currency for daily use.
Digital Transactions Signal a Clear Shift
The numbers tell a compelling story. Between January and June 2025, Bakong processed 303 million transactions in Khmer Riel, more than double the same period in 2024. The total value reached KHR 128.6 trillion or about 32 billion dollars, reflecting a strong 62.2 percent increase year on year. While US dollar transactions also grew, they lagged behind, with 240 million transactions valued at 68.9 billion dollars, marking a 44.9 percent increase. This gap highlights a significant behavioural shift, where Khmer Riel usage is expanding at a faster pace, signalling growing trust in the local currency alongside rapid adoption of digital payments.
Policy, Technology, and Confidence Align
This progress did not happen overnight. It is the result of long term policy direction combined with technological innovation. The Cambodian government has promoted the use of the Khmer Riel since the early 2000s to strengthen economic stability.
With the launch of Bakong in October 2020, these efforts entered a new phase. Built on blockchain technology, the platform ensures secure, transparent, and efficient transactions while connecting banks and financial institutions into a unified system. According to Chea Serey, this aligns with broader regional trends where countries are strengthening their national currencies to support trade and financial resilience.
“The rise in Khmer Riel transactions is a milestone for our country,” Dr. Serey said. “Steadily strengthening the role of the Khmer Riel in circulation, savings, and investment is essential to maintain economic resilience, especially at a time when the US dollar faces increasing volatility in international markets for trade and investment.”
Financial Inclusion Expands Across the Country
Beyond efficiency, Bakong is reshaping access to financial services. The system allows users to transfer money seamlessly across institutions using mobile phones, opening doors for people who previously had limited access to traditional banking.
“It also promotes financial inclusion, enabling more Cambodians to access banking services, even in rural areas where traditional banking is limited,” she said. In provinces across the country, farmers now receive payments directly into digital wallets, while small businesses transact with suppliers without relying on cash. This accessibility is gradually integrating more citizens into the formal financial system.
Public Engagement Drives Adoption
Technology alone is not enough to change financial habits. Public awareness has played a crucial role. The National Bank of Cambodia has actively promoted Khmer Riel usage through education campaigns and outreach programs across provinces. These efforts encourage citizens to see the currency not just as convenient but as a practical tool in a modern economy. As more people experience the ease and safety of digital payments, confidence continues to grow, reinforcing the upward trend in Khmer Riel transactions.
Regional Connectivity Strengthens Usage
Cambodia is also extending this digital ecosystem beyond its borders. Through partnerships with regional platforms such as Alipay Connect and UnionPay International, Bakong now supports cross border transactions with countries including Thailand, Laos, Vietnam, South Korea, Malaysia, and China.
The introduction of the Bakong Tourists app in August 2024 further strengthens this ecosystem by allowing foreign visitors to pay in Khmer Riel. This not only improves convenience for tourists but also increases the circulation of the local currency within the economy.
A Dual Currency System in Transition
Despite this progress, Cambodia remains a dual currency economy where US dollars still dominate large transactions. However, the faster growth of Khmer Riel payments suggests a gradual rebalancing. Bakong is helping narrow the gap by making local currency transactions easier, safer, and more efficient.
“Bakong is more than a digital platform. It is a tool to gradually shift behaviour towards Khmer Riel, reduce dependence on cash, and strengthen the resilience of our financial system,” Dr. Serey said.
Everyday Impact on Cambodian Lives
For many Cambodians, this transformation is already visible in daily life. Street vendors and shop owners now accept digital payments, allowing customers to pay instantly without carrying cash.
“It’s fast and safe. I don’t need to count piles of banknotes anymore,” said Eng Lai Herng, vendor in Borey New World Kour Srov2, located in Prek Kampeus village, Dangkor District, Phnom Penh. These small but meaningful changes reflect a broader shift in how people interact with money.
The Future of Khmer Riel in a Digital Era
Looking ahead, the trajectory is clear. With continued investment in technology, financial education, and international connectivity, Khmer Riel transactions are expected to keep growing faster than dollar payments. Cambodia’s experience demonstrates how digital infrastructure, supportive policy, and public engagement can work together to reshape financial behaviour. The Khmer Riel is no longer just a national symbol. It is becoming a central player in a modern digital economy, strengthening financial resilience and positioning Cambodia more firmly within regional economic integration.