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.

South Korean visitors to Cambodia can now make digital payments by scanning QR codes, thanks to a new cross-border payment agreement between the National Bank of Cambodia (NBC) and Jeonbuk Bank.

In an era where digital payments are swiftly replacing cash transactions, the world is becoming increasingly connected through technology. One significant stride in this direction is the recent cross-border payment agreement between the National Bank of Cambodia (NBC) and South Korea’s Jeonbuk Bank. This partnership opens up new possibilities for South Korean tourists visiting Cambodia, enabling them to make digital payments using QR codes. As part of this initiative, Cambodia’s digital payment landscape is rapidly evolving, with the Bakong app at the forefront. This article delves into the implications of this agreement, the history and development of the Bakong app, and how it enhances convenience for both tourists and residents alike.

The Cross-Border Payment Agreement: A New Era of Convenience

On August 29, 2024, a groundbreaking cross-border payment agreement was signed between the NBC and Jeonbuk Bank, marking a significant milestone in the financial relationship between Cambodia and South Korea. This agreement allows Korean tourists to make payments in Cambodia using digital QR codes, particularly through the Jeonbuk Bank mobile application. The convenience offered by this system is expected to boost tourism, trade, and overall financial inclusion in both countries.

Chea Serey, the Governor of NBC, highlighted the potential of this collaboration to elevate financial cooperation between Cambodia and South Korea. By leveraging technology, the initiative aims to benefit citizens and visitors of both nations. The introduction of cross-border QR code payments is not only a testament to Cambodia’s commitment to advancing financial digitalization but also a significant step towards promoting the use of the Cambodian riel (KHR) within the country.

Bakong App: A Revolutionary Digital Payment Platform

At the heart of Cambodia’s digital payment revolution is the Bakong app, a mobile payment platform launched by the NBC. Named after the ancient Bakong temple, one of the oldest temples in Cambodia, the app is a symbol of the country’s rich cultural heritage and its modern aspirations.

The Genesis of Bakong

The development of the Bakong app began as a response to the growing need for a unified and inclusive digital payment system in Cambodia. Launched in October 2020, Bakong was envisioned as a central component of Cambodia’s financial infrastructure, designed to facilitate real-time payments and promote financial inclusion. Unlike traditional banking systems, Bakong operates on a blockchain-based platform, making it more secure, transparent, and efficient.

One of the primary goals of Bakong was to create a cashless society by providing a digital wallet that could be easily accessed by all Cambodians, regardless of their socio-economic status. The app allows users to make payments, transfer money, and even store their funds digitally, thereby reducing the reliance on cash transactions. Over the years, Bakong has evolved into a comprehensive payment solution that integrates various financial services under one platform.

Development and Expansion

Since its inception, Bakong has seen significant growth and adoption across Cambodia. As of 2024, the app has garnered over 8 million users, with a substantial portion of the population relying on it for their daily transactions. The NBC has continuously worked on expanding Bakong’s capabilities, integrating it with other financial institutions, and forging partnerships with neighboring countries to enable cross-border payments.

One of the key developments in Bakong’s journey has been its integration with international payment systems. Cambodia has successfully launched cross-border QR payment projects with Thailand, Vietnam, Laos, and China. These partnerships have allowed Cambodian residents to use their local digital wallets while traveling in these countries, further enhancing the convenience of the Bakong app.

Bakong Tourist App: Enhancing the Experience for International Visitors

Recognizing the importance of tourism to Cambodia’s economy, the NBC introduced the Bakong Tourist app, a tailored version of the original Bakong platform, designed specifically for international visitors. This app simplifies the payment process for tourists, allowing them to download the app, register, and top up their accounts through Bakong’s business partners.

The Bakong Tourist app is particularly beneficial for Korean tourists, who can now use the Jeonbuk Bank mobile app to make payments in Cambodia via QR codes. This seamless integration ensures that tourists can enjoy a hassle-free payment experience during their stay, without the need to carry large amounts of cash or worry about currency exchange rates.

The Impact on Tourism and Financial Inclusion

The introduction of cross-border QR code payments and the Bakong Tourist app is expected to have a profound impact on Cambodia’s tourism industry. South Korea has long been one of the top sources of tourists to Cambodia, with visitors attracted to the Kingdom’s rich cultural heritage, beautiful landscapes, and historical sites such as Angkor Wat. The ability to make digital payments effortlessly will likely encourage more South Korean tourists to visit, boosting the local economy.

Moreover, the promotion of digital payments aligns with Cambodia’s broader goal of financial inclusion. By making digital payment options accessible to everyone, including tourists, Cambodia is paving the way for a more inclusive financial system. This move not only benefits the tourism industry but also contributes to the overall economic stability of the country.

A Step Forward in Cambodia-South Korea Financial Cooperation

The collaboration between NBC and Jeonbuk Bank is more than just a financial agreement; it represents a deepening of economic ties between Cambodia and South Korea. By facilitating cross-border digital payments, the two countries are setting the stage for increased trade, investment, and tourism. The successful implementation of this project could serve as a model for other nations looking to enhance their financial cooperation through technology.

Looking Ahead: Future Prospects

As Cambodia continues to develop its digital economy, the future looks promising for the Bakong app and its users. The NBC has already expressed its intentions to expand cross-border payment projects to other countries, further integrating Cambodia into the global digital economy. For Cambodian residents, this means greater convenience when traveling abroad, while for tourists, it means a more seamless and enjoyable experience when visiting the Kingdom.

The potential for further innovation in the digital payment space is immense. As more countries adopt similar systems, we could see the emergence of a truly global digital payment network, where transactions are made effortlessly across borders, without the need for traditional banking intermediaries.

Join the Conversation

The introduction of cross-border QR payments between South Korea and Cambodia, facilitated by the Bakong app and Jeonbuk Bank, marks a significant milestone in the digital transformation of Cambodia’s financial landscape. As we look to the future, the question arises: How will this innovation shape the tourism industry and the broader economy in the years to come?

We invite you to share your thoughts and experiences. Have you used the Bakong app or other digital payment platforms while traveling? How do you think this new cross-border payment system will impact tourism in Cambodia? Join the conversation in the comments below and let us know your views!

Located in northeastern Kratie Province, Kratie is a historically rich riverside province along the Mekong River, known for its laid back lifestyle, strong cultural traditions, and natural beauty. Covering approximately 11,094 square kilometers, the province has an estimated population of around 360,000 people in 2026, with most residents engaged in agriculture, fishing, and small scale trade.

Kratie has long served as a key transit point connecting central Cambodia to northeastern provinces such as Stung Treng, Mondulkiri, and Ratanakiri, while also linking to regional trade routes toward Laos. Located roughly 315 kilometers from Phnom Penh, the province is accessible by road in about 5 to 6 hours. Its economy is driven mainly by agriculture including rubber, cassava, and rice, alongside growing ecotourism centered around the rare Irrawaddy dolphins.

In recent years, infrastructure projects like the new Mekong bridge, along with increasing interest in agro industry, logistics, and tourism, have positioned Kratie as an emerging destination for investment and business expansion in Cambodia’s northeast corridor.

A new $114 million bridge across the Mekong River in Kratie province is now open, marking a major upgrade in Cambodia’s transport network and a significant boost for the northeastern economic corridor. The project creates a permanent connection between communities on both sides of the river and signals growing momentum in regional infrastructure development that investors and business leaders should pay close attention to.

A Long Awaited Link Across the Mekong

The Cambodia China Friendship Mekong Kratie Bridge officially opened to traffic on April 1, delivering on its construction timeline. The project first broke ground in January 2023 under the leadership of former Prime Minister Samdech Techo Hun Sen and former Chinese Ambassador to Cambodia Wang Wentian. Its completion represents a clear example of Cambodia’s continued focus on expanding strategic infrastructure to support long term growth.

Stretching 1,761 meters long and 13.5 meters wide, the bridge is designed to handle a mix of traffic, including cars, motorcycles, and pedestrians. It also maintains sufficient clearance for river navigation, ensuring that transport on the Mekong remains uninterrupted. The structure connects Chitr Borei district on the eastern bank with Prek Prasab district on the western side, effectively linking key segments of National Roads 6 and 7.

Strengthening the Northeast Economic Corridor

This bridge plays a critical role in improving connectivity across Cambodia’s northeastern provinces, an area rich in agricultural potential but historically limited by transport constraints. By reducing travel time and logistics costs, the new link is expected to streamline the movement of goods, particularly agricultural and agro industrial products, into larger domestic and export markets.

For investors and business operators, this development signals improved supply chain efficiency and opens the door to new opportunities in agribusiness, logistics, and regional trade. Faster and more reliable transport routes can significantly enhance the competitiveness of businesses operating in or sourcing from these regions.

Unlocking Tourism and Local Growth

Beyond trade, the bridge is set to reshape travel patterns in the region. It makes journeys between Kampong Thom and northeastern provinces more direct and accessible, which could stimulate tourism flows to previously less visited destinations.

For local communities, the impact is immediate and practical. The bridge reduces dependence on ferry crossings, offering safer and more consistent access to schools, healthcare facilities, and essential services. This improved accessibility can gradually lift living standards and support small scale local enterprises.

A Strategic Investment Backed by International Cooperation

The project aligns with the government’s Pentagonal Strategy, where infrastructure connectivity is positioned as a core driver of economic expansion. It reflects a broader commitment to modernizing Cambodia’s transport systems to support industrial growth and regional integration.

Funded through concessional loans from China, the bridge was constructed by Shanghai Construction Group and supervised by Guangzhou Wanan Engineering Consulting. The collaboration highlights ongoing infrastructure partnerships between Cambodia and China, which continue to play a key role in delivering large scale development projects across the country.

Why Investors Should Pay Attention?

For investors or businesses, this bridge is more than just a transport upgrade. It represents a shift in accessibility across Cambodia’s northeast, turning previously remote areas into more viable destinations for investment. Improved infrastructure typically leads to rising land values, increased business activity, and stronger regional integration.

Sectors such as agriculture processing, logistics hubs, tourism development, and cross border trade stand to benefit the most. As connectivity improves, so does the potential for scaling operations and reaching broader markets with lower operational friction.

Conclusion

The opening of the Mekong bridge in Kratie is a clear signal that Cambodia is accelerating its infrastructure transformation. By connecting key regions, reducing transport barriers, and enabling economic activity, the project strengthens the foundation for long term growth. For business leaders and investors, the message is straightforward. Opportunities are expanding beyond traditional urban centers, and those who move early into emerging corridors like the northeast could gain a strategic advantage.