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

Ean Lay, Sam and Phon, Sophat and Som, Vuddneath and Lum, Sothearak (2026): Currency Sovereignty in Transition: Cash Circulation Governance at the Central Bank in Cambodia and Lessons from Four Central Banking Systems.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Central Bank, Sovereignty, Banking System
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B30 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B40 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches; G - Financial Economics > G1 - General Financial Markets; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; K - Law and Economics > K0 - General; K - Law and Economics > K0 - General > K00 - General

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