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.

NBC Raises Concern Over Unregulated Payment App

The National Bank of Cambodia has issued a public warning urging people to stay alert after a surge in promotions for an app known as PaiPay, also referred to as PAI, circulating widely on Telegram. The central bank revealed that this app allows users to create wallets, deposit funds, transfer money, and make payments, yet it operates without any regulatory approval. This has raised serious concerns about potential online scams, especially as the app continues to gain visibility through aggressive digital promotion in major areas such as Phnom Penh and Preah Sihanouk. Authorities are emphasizing that the lack of oversight means users could be exposed to financial risks without legal protection.

PaiPay and Pi Pay Are Not the Same

Confusion has grown partly because PaiPay appears to be imitating the name and concept of Pi Pay Plc, a legitimate and licensed digital payment platform in Cambodia. According to the central bank, the PaiPay app is not affiliated with any institution that holds a valid license. It operates mainly through a Telegram chatbot and is also available on major app stores, which may give users a false sense of legitimacy. The NBC made its position clear, stating, “The National Bank of Cambodia confirms that the PAI or PaiPay app is not a mobile payment service operated by any institution licensed by the NBC. Therefore, the public is advised to remain highly vigilant against online scams that may expose them to risks,” said the NBC statement. This clarification directly addresses the growing question among users about which service is legal.

Pi Pay Confirms Its Licensed Status

In response to the confusion, Pi Pay Plc reaffirmed its official standing as a licensed payment service provider regulated by the NBC.

The company stressed that it operates fully in compliance with Cambodian laws and holds the registered trademark rights to its brand. It also acknowledged the central bank’s role in protecting consumers and maintaining transparency across the financial sector. “We would also like to express our appreciation to the National Bank of Cambodia for its continued efforts in maintaining transparency, protecting consumers and taking action against unlicensed or misleading financial service operators,” it said. This statement reinforces that Pi Pay remains a trusted and legally recognized platform, unlike the unregulated PaiPay application.

Authorities Step Up Investigation

The National Bank of Cambodia has confirmed that it is working closely with relevant authorities to investigate the promotion and operation of the PaiPay app. The goal is to prevent further spread of misleading information and protect the public from potential fraud. As digital payment platforms become more popular, officials are urging users to verify the legitimacy of financial services before using them. This case highlights the importance of regulatory oversight in ensuring safe and secure financial transactions in Cambodia’s rapidly evolving digital economy.

Conclusion

The difference between PaiPay and Pi Pay is clear when it comes to legality and trust. While Pi Pay operates under official regulation and complies with national laws, PaiPay has no recognized license and poses potential risks to users. The warning from the National Bank of Cambodia serves as a timely reminder for the public to remain cautious, verify sources, and avoid engaging with unregulated financial platforms. As Cambodia continues to embrace digital payments, awareness and vigilance will be key to protecting both consumers and the broader financial system.

A New Electric Vehicle Factory Signals Industrial Growth

Pursat Province is preparing to welcome a significant boost to its industrial landscape with the announcement of a 46 million US dollar electric vehicle assembly and installation factory. According to the Council for the Development of Cambodia, the project will be established in the Pursat Special Economic Zone, marking another step forward in Cambodia’s push toward modern and sustainable industries. The development reflects growing investor confidence in the country’s manufacturing sector and highlights the increasing role of green technology in shaping Cambodia’s economic future.

Investment Brings Jobs and Local Opportunities

The new factory is expected to generate around 428 jobs, offering valuable employment opportunities for residents in Krakor District and surrounding areas. For many local families, this project represents more than just industrial expansion, it creates pathways for stable income and skill development in a rapidly evolving sector. The CDC extended its congratulations to the local community, emphasizing the positive social and economic impact this investment will bring to Pursat Province.

Strategic Location Enhances Industrial Potential

The facility will be located in Sarvan Village, Sna Ansa Commune, Krakor District, within the Pursat Special Economic Zone. This strategic location provides access to infrastructure, logistics networks, and a supportive investment environment, making it ideal for large scale manufacturing. The project is being developed by Zo Motor (Cambodia) Co., Ltd., further strengthening Cambodia’s position as an emerging hub for automotive assembly in the region.

Cambodia’s Investment Momentum Continues

The EV factory is part of a broader wave of investment activity across the country. In January 2026 alone, the Cambodia Investment Committee under the CDC approved 43 investment projects with a combined value of approximately 752 million US dollars. This surge in investment underscores Cambodia’s attractiveness to international investors and its commitment to diversifying the economy through high value industries such as electric vehicles and advanced manufacturing.

Conclusion

The establishment of the EV assembly plant in Pursat marks a meaningful step in Cambodia’s industrial evolution. With strong investment inflows, job creation, and a shift toward sustainable technologies, the country is building a foundation for long term economic growth. As projects like this continue to emerge, Cambodia is positioning itself as a competitive destination for future focused industries in Southeast Asia.