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The Cambodian government, while pursuing its own cryptocurrency Entapay, paradoxically banned financial institutions from taking advantage To engage in cryptocurrency transactions. of confusion for the country’s cryptocurrency entrepreneurs.
Men Sam An, Cambodian Deputy Prime Minister, recently announced the launch of Entapay, a cryptocurrency, and encouraged the company to abide by the laws of the company, according to The Phnom Penh Post.
Major government cryptocurrency projects
Entapay is a government-backed multi-functional digital currency payment system, which includes storage, trading, exchange and offline management, according to its website. It can be seen as a decentralized Alipay application based on blockchain technology.
Entapay takes its name from the quantum mechanical phenomenon of quantum entanglement, according to the website, which features secure encryption and information transmission. As a multifunctional payment system, Entapay removes the disadvantage of multi-digital currency management, laborious trading process and inadequate physical transaction sites.
Entapay will provide offline exchange services for other cryptocurrencies.
The website also claims that Entapay will replace VISA as a traditional payment method.
Entrepreneurs face uncertainty
Cryptocurrency entrepreneurs, meanwhile, warn that Cambodia’s laws governing cryptocurrency are uncertain, since the government has opposed cryptocurrencies while supporting their technology, according to the Penh Post Pnom.
The National Bank of Cambodia has been reluctant to support cryptocurrency, according to Mean, the main developer of the Khmer Crypto Foundation. In Mean, who developed KHCoin, a cryptocurrency, said that he understood the uncertainty of the government, given the scams, volatility and lack of regulation that plagued the crypto-currency. currencies in general.
KHCoin is an open source project released under the MIT / X11 license, according to its website. The source code can be found on GitHub at https://github.com/khcoin.
The December National Bank declared illegal cryptocurrency transactions when Mean tried to monetize KHCoin after offering it for free. The bank banned banks and microfinance institutions from buying, selling and promoting cryptocurrencies.
In response, the country’s banks prevented customers from using their bank accounts to buy or sell cryptocurrencies. This made it difficult to trade cryptocurrencies even though the government had not banned people from owning them.
Read also: The Central Bank of Cambodia plans to conduct blockchain trials for the cashless economy
National Bank Explores Blockchain
Prior to its December action, the National Bank began exploring blockchain technology, which provides technology for cryptocurrencies. The bank signed an agreement last April with a Japanese company to develop a blockchain project to track interbank transactions and loans.
Steve Miller, the founder of CryptoAsia, a Cambodia-based blockchain group, said the national bank project is a private blockchain, which is a database without a verification process, and that the verification process requires cryptocurrences. He stated that cryptocurrencies are needed for public blockchains to work properly as they encourage anonymous participants to secure the system.
The national bank’s restrictions on cryptocurrency undermined developers’ efforts to pursue blockchain technology.
Rithy Thul, a blockchain builder seeking to facilitate overseas cash transfer payments in Cambodia, said the future of the blockchain in Cambodia remains uncertain. He said that it is a good sign that the national bank is trying to use blockchain technology.
DApact, a company that uses blockchain technology to connect lenders to borrowers without the need for an intermediary, has launched a $ 10,000 pilot project in the country, according to its website, and is seeking investors.
Pierre-Marie Rivière, head of the DApact network, said blockchain technology was already being rolled out in the country.
Meanwhile, Mean still hopes to monetize the KHCoin project.
Image from Shutterstock.
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