(Phnom Penh): In today’s rapidly transforming global financial landscape, the question is no longer whether we must innovate; instead, it is how and for whom. As governor of the National Bank of Cambodia (NBC), I have had the privilege of guiding a small, open economy through the challenges and opportunities of digital financial transformation. Our experience has underscored a central truth: Innovation, to be meaningful, must be inclusive. And inclusion, to be sustainable, must be intentional.

Across boardrooms, policy circles and global forums, we often discuss resilience, interoperability and market efficiency. These factors are critical. But too rarely do we ask: What does it take to design a financial system that genuinely works for everyone—from multinationals to migrant workers, from institutional investors to informal vendors? At the National Bank of Cambodia, this question has become central to how we approach policy, infrastructure and regional integration.

Rethinking the development pathway

For much of the 20th century, financial development followed a predictable path. Countries progressed step by step—from cash to cards, from physical branches to digital channels. Today, that model no longer holds. Technology has broken the sequence. Emerging economies are no longer bound by the need to replicate legacy systems incrementally. Instead, we can leapfrog—designing fit-for-purpose infrastructure that reflects modern capabilities and local needs.

Cambodia has embraced this opportunity. Faced with a historically large underbanked population, fragmented payment systems and high cash dependency, we chose to respond not with incremental reforms but with a bold reimagining of our financial ecosystem.

Building Bakong: A national digital infrastructure for all

In 2020, the National Bank of Cambodia launched Bakong, a digital payment system based on distributed ledger technology (DLT). Bakong was not built to replace existing players, but to connect them—unifying banks, e-wallet providers and microfinance institutions into a single interoperable framework. It now links 69 financial institutions, has reached more than 30 million users and has processed more than US$147 billion in cumulative value—equivalent to over three times Cambodia’s gross domestic product (GDP).

This is not merely a technical achievement; it is a strategic leap. By building digital infrastructure that is accessible, inclusive and aligned with real-world usage, we have empowered individuals and businesses across the country to participate in the formal financial system. During the COVID-19 pandemic lockdown periods, Bakong enabled the government to disburse more than 13 million emergency payments directly to affected households—transactions that would have been logistically impossible through traditional channels.

From domestic innovation to regional integration

We also recognize that innovation thrives best when nations work together, and inclusion cannot stop at national borders. In a region where remittances remain lifelines, the need for cost-effective, real-time cross-border payments is acute. Cambodia has worked closely with its neighbors—Thailand, the Lao People’s Democratic Republic (Laos), Vietnam and Malaysia—to establish QR (quick response)-based interoperability, allowing workers to send funds home instantly and at a fraction of the traditional cost. In Malaysia, for instance, Cambodian workers can now remit funds via mobile banking apps with fees as low as 0.12 percent.

We have also extended this model to tourists. In 2023, we launched the Bakong Tourist App, enabling travelers to link international cards (such as Visa or Mastercard) and pay across Cambodia using Bakong’s KHQR feature. With more than 4.5 million QR-enabled merchants, from urban malls to rural markets, tourists can transact seamlessly—while small vendors benefit from wider customer reach without having to invest in costly point-of-sale (POS) systems.

This year, we proudly mark another milestone: the official launch of cross-border connectivity with Japan through a KHQR–JPQR integration, announced at the World Expo Osaka 2025. With further connections underway with Singapore, India and the Philippines, we are laying the foundations for a truly borderless ASEAN (Association of Southeast Asian Nations)payment network.

The role of the central bank in a digital economy

This journey has required a rethinking of what central banks are—and what they must become. Traditionally seen as custodians of monetary stability, we now find ourselves also tasked with architecting digital infrastructure, catalyzing innovation and ensuring equitable access.

At the National Bank of Cambodia, our approach has been one of guided collaboration. We provide regulatory clarity and a public-interest vision. The private sector—including our longstanding partner Soramitsu, the Japanese firm that co-developed Bakong, as well as the broader banking industry—brings agility and technical capability. Together, we built not just a product, but a nationally owned platform grounded in local needs. This collaboration proves that when public purpose meets private capability, the results can be transformative.

Equally important is our regulatory posture. We have implemented robust e-KYC (know-your-customer) protocols, streamlined consumer onboarding and prioritized consumer protection. Our recent circular on crypto-assets reflects a cautious openness—encouraging innovation while maintaining guardrails that protect financial integrity and systemic trust.

We have also embedded public-service integration into our platform—enabling the digital payment of taxes, utilities and government fees. This not only increases convenience and transparency but also rebuilds trust between citizens and the state.

Inclusion as a strategy, not a slogan

Too often, financial inclusion is treated as a desirable but secondary outcome—something that follows profitability or innovation. We reject that sequencing. In Cambodia, inclusion is a strategic imperative. We believe that a payment system is only as strong as its reach. And we measure success not solely by the volume of transactions but also by who benefits from them.
This belief is embedded in our national strategy, the Digital Economy and Society Policy Framework 2021–2035. This whole-of-society vision prioritizes digital infrastructure, education and entrepreneurship, seeking not only to digitize but to democratize.

That said, it’s important to remember that building modern markets is not only about embracing new tools. It is about committing to deeper values. It is about ensuring that innovation leads to inclusion, that growth is equitable and that access to opportunity is not determined by geography or income. We must ensure that a woman selling produce in a rural village has the same access to markets and payments as a business executive in the capital. We must ensure that young people across our nations are equipped with the skills, tools and trust to thrive in the digital economy.

As financial leaders, we must ask ourselves: Are we designing systems that reduce friction but preserve exclusion? Are we improving access for the banked while leaving the unbanked behind? Or are we future-proofing our infrastructure in ways that are also future-empowering our people?

What this all means for global financial leaders

Cambodia’s experience offers a series of reflections that may resonate with central bankers, institutional investors and financial executives navigating similar transitions. First and foremost, it underscores the importance of designing infrastructure with a clear purpose. Financial systems are never neutral—they either widen or narrow access depending on the values built into their designs. Inclusion must be a foundational principle, not a retrospective adjustment.

Equally, the journey highlights the importance of strong national systems as a prerequisite for meaningful regional integration. Interoperability between countries begins with cohesion at home. Only by strengthening their domestic infrastructures can nations serve as credible and capable partners in broader cross-border frameworks.

The evolving role of central banks also demands attention. We are no longer solely the guardians of stability; we are catalysts of innovation. In today’s environment, this means embracing a more proactive and collaborative role—setting the vision, providing regulatory clarity and enabling innovation while safeguarding systemic trust.

At the same time, the public sector cannot deliver these ambitions alone. Our experience affirms the value of responsible, mission-aligned partnerships with the private sector. When guided by public purpose and built on mutual accountability, these collaborations can accelerate progress without compromising oversight.

And finally, while technology provides the tools, it is trust that gives them lasting impacts. Financial systems must be resilient not only in their design but also in the confidence they inspire—from consumers, businesses and institutions alike. Long-term success lies not just in technical efficiency but also in the ability to cultivate confidence, safeguard inclusion and uphold shared standards in a rapidly changing world.

Looking ahead

The global financial system stands at a crossroads. We face the dual challenges of fragmentation and inequality, alongside extraordinary technological opportunity. Emerging markets are not passive observers in this transition. We are contributors—and in some domains, we are becoming leaders.

Across Southeast Asia, Africa and Latin America, we see promising examples of countries reimagining their financial futures—not by copying existing models, but by crafting new ones tailored to local realities. This momentum is encouraging. However, sustained success will require leadership, long-term vision and a willingness to break from outdated models. It will require digital inclusion to be treated not as an afterthought, but as a pillar of economic strategy.It will demand partnerships among central banks, regulators, ministries, private innovators and development partners alike.And above all, it will require investment—not just in digital tools but also in institutions, people and trust. We are living at a moment of extraordinary possibility. With foresight and determination, emerging economies can shape financial systems that are more resilient, more inclusive and more attuned to the needs of today’s citizens and tomorrow’s markets.

At the National Bank of Cambodia, we do not claim to have all the answers. But we are committed to asking the right questions—and to building systems that are secure, open and inclusive by default. We are ready to share what we have learned and are equally eager to learn from others.

Ultimately, finance is about enabling human potential. When payments move freely, markets grow. When markets grow,societies prosper. But prosperity must be shared. And innovation must lift everyone.

So, let us build not just efficient systems but also equitable ones.

Let us pursue not only speed and scale but also access and agency.

And let us remember that the most valuable currency in any economy is trust—something that can only be earned when innovation and inclusion go hand in hand.

Dr. Serey Chea, Governor, National Bank of Cambodia
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