Currency Sovereignty in Transition: Cash Circulation Governance at the Central Bank in Cambodia and Lessons from Four Central Banking Systems

Sam Ean Lay, Sophat Phon, Vuddneath Som and Sothearak Lum

MPRA Paper from University Library of Munich, Germany

Abstract: This study assesses whether the central Bank in Cambodia’s (NBC) cash circulation system can support its goals of expanding riel use and sustaining trust as Bakong scales. While functional, the system faces gaps in rural access, data, analytics, and public education. Comparative evidence suggests current infrastructure is insufficient for de‑dollarization at the pace NBC projects. Theoretically, the review shows that currency substitution depends on governance capacity, not macroeconomic conditions alone; extends lifecycle models to integrate digital and physical currency governance; and provides a case of CBDC deployment preceding mature cash systems. Practically, comparator cases highlight lessons in data use (U.S.), resilience (Sweden), rural access (Brazil), and counterfeit defence (South Africa). Scenario analysis indicates riel circulation could reach mid‑thirties by 2034 under current policy, or half under sustained reform. Cambodia’s position—building infrastructure deliberately rather than inheriting legacy systems—offers a unique advantage for monetary sovereignty.

Keywords: Central Bank; Sovereignty; Banking System (search for similar items in EconPapers)
JEL-codes: B30 B4 B40 B5 G1 G15 K0 K00 (search for similar items in EconPapers)
Date: 2026-08-06
New Economics Papers: this item is included in nep-mon and nep-pay
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