According to Entapay’s website, the Cambodian national cryptocurrency will be a multi-functional digital currency payment system which will offer storage management, trading, exchange and offline transactions.
The Cambodian government has banned financial institutions from engaging in cryptocurrency transactions, while on the other, it is looking to introduce its own cryptocurrency.
Of Late, various countries around the globe have been considering launching their own state backed cryptocurrency in order to stay ahead of the curve when it comes to the rapidly evolving blockchain and cryptocurrency space. Joining this list, Cambodia’s deputy Prime Minister Men Sam An, recently announced the launch of “Entapay”, country’s own state backed cryptocurrency. However, the stance of Cambodian government towards cryptocurrency seems confusing as, on one hand, it has banned financial institutions from engaging in cryptocurrency transactions, while on the other, it is looking to introduce its own digital currency based on blockchain technology.
According to Entapay’s website, the Cambodian national cryptocurrency will be a multi-functional digital currency payment system which will offer storage management, trading, exchange and offline transactions. The name Entapay is inspired by the Quantum Mechanical Phenomenon of Quantum Entanglement which enables safe encryption and transmission of information. It is like a blockchain based, decentralized Alipay application.
The website states, “One day, Entapay will replace VISA and become the new mainstream payment method.”
Entapay is expected to overcome the difficulties faced in managing multi-digital currencies, the painstaking process of trading and inadequate physical trading sites. It will also offer off-line exchange services for other cryptocurrencies.
In view of the fact that the government is introducing its own digital currency and has blocked crypto transactions, cryptocurrency entrepreneurs believe that Cambodia’s laws governing cryptocurrency are doubtful, reported the Pnom Penh Post. Rithy Thul, a blockchain entrepreneur, is of the view that the future of blockchain technology in Cambodia is uncertain, however, the national bank considering to use blockchain technology is a positive move.
In Mean, a crypto enthusiast who has developed KHCoin, a cryptocurrency, opines that considering the prevalent scams, volatility and lack of regulation in the crypto market, the government’s uncertainty is understandable. As per its website, KHCoin is an open source project released under the MIT/X11 license. Moreover, according to Mean, the lead developer of the Khmer Crypto Foundation, the National Bank of Cambodia has been unwilling to support cryptocurrency.
Earlier in December when Mean attempted to monetize KHCoin, cryptocurrency transactions were declared unlawful by country’s national bank and all financial institutions were restricted from undertaking any kind of cryptocurrency trading. However, people are allowed to own digital currencies but customers are not allowed to use their bank accounts to buy or sell the same.
It is to be noted that the national bank has been exploring blockchain technology to track interbank transactions and lending. In April 2017 it had signed an agreement with a Japanese firm to develop a blockchain project.
Steve Miller, the founder of CryptoAsia, a Cambodia based blockchain group, said,
“At its core, the blockchain is just a database . . . We’ve discovered a way for the public to change this database without corrupting any of the previous entries within it, so it’s impossible to fake a transaction.”
A private blockchain is simply a database without a verification process and it is the verification process, known as mining which makes cryptocurrencies necessary.
“Cryptocurrencies are necessary for public blockchains to function properly because they provide the incentive for anonymous participants to secure the system,” he added.
Mean continues to remain optimistic and looks forward to monetizing the KHCoin project. Moreover, DApact has launched a USD $10,000 pilot project in Cambodia and is looking for investors. The DApact company would be making use of blockchain technology to eliminate intermediaries and will directly connect lenders with borrowers.
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