The National Bank of Cambodia (NBC) has taken a progressive step by granting commercial banks and payment institutions the authority to offer stablecoin and backed cryptocurrency services. This move signals a shift in the country's stance on digital assets, fostering innovation while maintaining regulatory oversight. Prior to offering cryptocurrency services, commercial banks or payment institutions must obtain approval from the NBC. Once approved, they can provide a range of services, including swaps between cryptocurrencies and fiat currencies, transfers between cryptocurrency accounts, and custodial services. The NBC's decision reflects a growing recognition of the potential benefits of stablecoins and backed cryptocurrencies. Stablecoins, pegged to fiat currencies such as the US dollar, offer price stability and reduced volatility compared to unbacked cryptocurrencies like Bitcoin. By allowing banks to offer stablecoin services, the NBC is providing a regulated and secure environment for individuals and businesses to engage with digital assets. However, the NBC remains cautious about unbacked cryptocurrencies, which continue to be prohibited in Cambodia. This decision is in line with the cautious approach taken by many central banks worldwide, highlighting the need for continued regulatory development and a balanced approach to digital assets. Cambodia's move towards embracing stablecoins and backed cryptocurrencies positions the country as a leader in Southeast Asia's digital asset landscape. By providing a regulated framework for these services, the NBC is fostering innovation and promoting financial inclusion while safeguarding the interests of consumers and the stability of the financial system.