Cambodia Launches CBDC

China is scaling the digital yuan pilot phase. The U.S. hasn’t sussed out a strategy for central bank digital currencies (CBDC).

But a pair of smaller economies, not unlike the Autobots, are ready to roll out. After a long pilot period, the National Bank of Cambodia launched its blockchain-based Bakong system yesterday.

• Access: anyone with a phone number in Cambodia
• Distribution: Via partner banks
• Purpose: Payments

Let’s jetset across the prime meridian

The Bahamas narrowly beat Cambodia for the rights to “world’s first CBDC available to all citizens.” Ten days ago, the Central Bank of the Bahamas launched the Sand Dollar, a stablecoin pegged to the Bahamian dollar, which is pegged to the U.S. dollar.

The upshot: For emerging economies, CBDCs can expand financial services to underbanked populations with high rates of smartphone penetration. At a macro scale, CBDCs could expedite interbank payments and give central banks more control over a country’s circulation. That could also mean more inflation and surveillance.