CRYPTOPROJECT ENTAPAY: NATIONAL CRYPTOCURRENCY OF CAMBODIA

After the launch of Venezuelan Petro in February, Cambodia is considering the possibility of developing its own national cryptocurrency.

Cambodian cryptproject will be called Entapay, and it is expected that it will be presented at a blockchain summit of South-East Asia countries in the capital Phnom Penh on Wednesday to be attended by the country's deputy prime minister.

Press release issued before the summit referred to Entapay as to “the link between integration payment of an encrypted digital currency and the real world”. It also states that cryptocurrency will be able to even replace Visa, being considered as a new mainstream payment regime.

Above press release also refers to Petro - Venezuela's cryptocurrency - as to an effective means to attract investments for partners and solve long economic crisis currently taken place in the country.

Nicholas Maduro shared and declared plans for issuing Venezuelan digital currency at first in December, introducing it as an addition or a supplement to depreciating bolivar (VEF). 

Maduro’s critics consider this step as a means to bypass US sanctions, which are aimed at putting pressure on an authoritarian regime that had control over hyperinflation and disruptions in the supply of food (food shortages). 

Currently, Venezuela has joined Russia, Iran and North Korea - countries that are accused of trying to use the growing popularity of cryptocurrency, because this new financial infrastructure is not subject to control of any central authorities, especially in the United States.

Experts warn that cryptocurrency, being anonymous, almost unregulated, and, at the same time, with a possibility of converting into a hard currency, can be used to circumvent economic sanctions, which are most often enforced through regulations and rules of disclosure of banking information.

Transactions with digital currency are carried out and reflected in the blockchain system, but not in any central banking authority. The foregoing allows you to conduct transactions, bypassing any boundaries and observing maximum confidentiality.

Cambodian cryptocurrency may be an attractive option for Hun Sen, Cambodian Prime Minister, who is threatened with international sanctions for the crackdown on opposition, media and activists.

Last week, the White House announced that it will suspend several aid programs for instances that, in the government's view, are guilty of political instability.

However, digital currencies are also considered as a way to boost the national economy. Last week, the Pacific island nation of the Marshall Islands became the first country in the world to recognize cryptocurrency as a legal tender.

New digital Sovereign as a form of payment will have the same status as the US dollar.