Reply to post: If i've understood it correctly...

Cambodia launches blockchain-powered peer-to-peer payments, hopes it crushes cash

lglethal Silver badge

If i've understood it correctly...

What you basically have is a local combination of a Visa/Mastercard style payment system but using your mobile to pay instead of a card.

Not actually that revolutionary (forget the blockchain bollocks, thats just a way for them to say "Look, how modern we are! Blockchain!"), but still not a bad idea in these times. The kicker will come down to what fees are charged to both the merchant and the buyer. Cash is generally preferred in such systems, because it is significantly cheaper per transaction for the merchant compared to Mastercard/Visa (who have been upping their fees massively in recent times).

If this system, can keep the fees down to resemble the associated costs for the merchant of using cash (and there are costs associated with cash - time required to bank any cash taken, plus bank fees associated with that, security fees for having cash on premises, etc.) then this could certainly take off. However, unfortunately, most of the time with these sort of arrangements, governments and banks want to see an immediate return on investment and so effectively price themselves out of the market. We'll just have to wait and see if the Cambodian Government and banks can keep their hands out of the till and let it grow naturally...

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