In one sentence: because the Kingdom’s youthful, entrepreneurial population sees Bitcoin as a border‑free, permission‑free upgrade to money—solving real pain points in remittances, financial inclusion and long‑term wealth preservation, even as the central bank experiments with its own digital rails.
Below is a deeper, evidence‑packed tour of the “why,” organized so you can quickly jump to the topics that matter most.
1. The Macro Backdrop: Dollarization & Financial Inclusion
Cambodia is still heavily dollarised; more than 80 % of day‑to‑day transactions happen in USD, limiting monetary sovereignty and leaving many citizens outside the formal banking system.
At the same time, roughly two‑thirds of adults remain unbanked, creating demand for open, phone‑based financial tools.
Bitcoin’s peer‑to‑peer design lowers the barrier to entry—no branch, no paperwork, no minimum balance—making it attractive to Khmer youth hungry for modern finance.
2. Remittances: Bitcoin Attacks an Expensive Problem
Cambodian migrants send home US $1.2 – 1.5 billion a year, but corridors to Thailand, Korea or Malaysia still cost double‑digit fees.
Moving the same value over the Bitcoin network costs pennies at off‑peak times, settling in ~10 minutes instead of days. That cost/time delta is the single biggest on‑ramp for first‑time Khmer users, especially among the 18‑to‑34 demographic that already accounts for ~97 % of local crypto activity.
3. Youth, Entrepreneurship & the “Crypto Ranking”
Chainalysis places Cambodia 17th worldwide for grassroots crypto adoption in 2024—leapfrogging far larger economies.
Why? A median age under 30 and an explosion of e‑commerce side hustles mean young founders crave borderless settlement rails and programmable money for DeFi experiments. Forbes profiled this grassroots “Bitcoin café” culture as far back as 2018, and it has only grown since.
4. Regulation: From Blanket Warnings to a Measured Sandbox
- 2018 joint statement: NBC, the securities watchdog and police warned that unlicensed crypto activity was illegal, prompting local banks to freeze exchange links.
- 2020‑23: NBC launched Bakong, a retail‑facing CBDC on Hyperledger Iroha, to solve inclusion and de‑dollarisation inside the banking perimeter.
- Dec 2024 Prakas B7‑024‑735: Cambodia pivoted to a “regulate‑and‑allow” stance, letting banks and PSPs offer custody and stablecoin services under strict consumer‑protection rules.
The takeaway? Bitcoin itself is not legal tender, but the door is open for compliant ramps—reducing grey‑market risk while preserving innovation.
5. Concrete Use‑Cases You’ll See on the Street
| Use‑Case | Why Bitcoin Helps | Real‑World Snapshot |
| Cross‑border salary & gig payments | Cheaper than SWIFT, immediate finality | Korean remittances now test Bitcoin rails side‑by‑side with Bakong. |
| Tourism spending | Tech‑savvy travellers carry BTC; merchants avoid card fees | Guesthouses & tuk‑tuk drivers in Siem Reap/Phnom Penh advertise “Bitcoin accepted.” |
| E‑commerce side‑hustles | No PayPal in local currency; BTC/USDT fill the gap | Phnom Penh Post reports merchants settling inventory bills in crypto. |
| Long‑term savings | Hedge vs. USD inflation, diversify beyond real estate & gold | Youth investors cite Bitcoin’s capped 21 M supply in local forums. |
6. Headwinds & Caution Flags
- Underground USDT flows: SCMP documented illicit tether usage for gambling and money‑laundering, spurring site‑blocking and KYC crackdowns.
- Consumer‑protection gap: NBC still warns that losses on speculative trades aren’t insured.
- Liquidity constraints: Limited regulated exchanges mean spreads can widen during volatility spikes.
7. The Road Ahead: Bitcoin + Bakong, Not Bitcoin
vs.
Bakong
Cambodia’s central bank embraces blockchain (Bakong) while the population experiments with the open Bitcoin network. Analysts see a coming “multi‑rail” future:
- Bakong for domestic riel payments and state‑backed stablecoins.
- Bitcoin for global, censorship‑resistant value transfer and long‑term saving.
- Regulated stablecoins as the bridge, courtesy of the 2024 Prakas.
That layered stack lets Cambodia capture the best of both worlds: state oversight where necessary and unabashed entrepreneurial freedom where possible.
✨ Key Take‑Aways for the Khmer Bitcoiner
- Solve a real pain‑point first (remittances, freelance income) before chasing trading profits.
- Stay compliant—use licensed on‑/off‑ramps to avoid headaches.
- Think long‑term, stack small sats; “slow and steady” beats leverage every time.
- Keep security uncompromising: self‑custody with hardware wallets and multi‑sig is your moat.
- Stay curious—Bakong, stablecoins and Bitcoin are complementary pieces in Cambodia’s digital‑money renaissance.
When you combine Cambodia’s energetic youth, under‑served financial landscape and a government now testing open‑minded regulation, the question flips from “Why Khmer Bitcoin?” to “Why not?” The momentum is real, and the future is bright—let’s build it. 💪🚀