Byline: Greta Kite-Gilmour

Remember when the internet was first introduced? Speculation was about on par with excitement: in one corner were the skeptics, widely dismissing it as an impractical fad, in the other were the enthusiasts, championing the idea of an unregulated information-sharing network. Fast forward 50 years to an uncannily analogous scenario, the scary-shiny new technology in question being cryptocurrency. There are now several hundred of these conceptual currencies circulating the globe, two of which are flitting between smartphones and computers as we speak: bitcoin, and its lesser known relative, BlackCoin.

Cryptocurrency is (in very basic terms) an internet-based digital tender – a medium of exchange that is decentralised and theoretically anonymous due to encrypted transactions. The currencies can be exchanged for regular money, though their dollar value can fluctuate significantly [sometimes by several hundred dollars overnight]. The most popular of these currencies is bitcoin, which works using a “proof of work” system (aka “mining”), whereby computer processing is used to solve equations and earn bitcoin as a result.

Entrepreneur Ki Chong Tran incited a wave of media attention in March 2014 when he submitted a proposal to the Bitcoin Foundation requesting a grant to allow the implementation of a steady market in Phnom Penh, including two bitcoin ATMs. The proposal was turned down, Tran believes, because “It was a very unique proposal and no one’s ever done something like that before.” At the time, the proposal sparked a comment from the National Bank of Cambodia which stated that it would not consider bitcoin as legal tender within the country.

At about the same time, a more dramatic blow to the bitcoin revolution came in the form of the evaporation of Japanese bitcoin exchange Mt. Gox, following a large-scale hacking incident, which resulted in the loss of over $460 million. Unsurprisingly, the event incited a worldwide ripple of fear over the security and regulation of bitcoin technologies.

None of this was enough to discourage local Steve Merger, however, who last December opened Coin Café, Phnom Penh’s first food and beverage venue to utilise payment via bitcoin. With his business on a steady increase (now hosting regular enthusiast meet-ups), as well as a newly formed website exporting local goods in exchange for bitcoin, Merger attests that the security of the currency is not the problem, rather, the use of a third party that deals with the currency.

“Bitcoin itself cannot be hacked,” Merger insists. “The companies who deal in bitcoin can be though, and that’s why if you use someone like Mt. Gox you’re introducing the third party risk that bitcoin was created to circumvent. Nobody even knows –the [Mt. Gox CEO] could have stolen these bitcoins, or he could have been hacked. Mt. Gox had a history of just being totally inept. I don’t know how they survived at all. Their service was garbage and their reputation was really bad.”

The more immediate issue we really need to be considering, Merger believes, is how the risks and benefits involved with using bitcoin can be weighed against those posed by existing financial institutions.

“Look at HSBC, Goldman Sachs and Bear Stearns – all these companies are regulated, and yet all failed and lots of people lost lots of money. And those were high-end investors – very sophisticated people. Everyone is screaming for regulation with bitcoin, but what difference does it make?” Merger remarks. “Now there’s something called fractional recession banking. It’s totally illegal and you would never think this kind of thing would be allowed to happen. But the banking system is so corrupt right now and nobody cares, because the system is insured by the government – if you lose your deposits, the government will just print more money to bail out the banks. This can’t happen with bitcoin because there’s only a limited amount that will ever be produced.”

Having said that, Merger agrees with the NBC’s decision to refuse recognition of bitcoin as legal tender within Cambodia – at least, for now. “In Cambodia, bitcoin is such a niche. This is the least of their concerns because there’s no market for it yet. So they’re right to ignore it for the moment.” Merger believes, however, that once bitcoin takes off, the NBC will likely revoke their decision. “Once they see its usefulness and the applicability of it to Cambodia then I think they’ll embrace it.”

According to Merger, Cambodia is, in fact, an ideal setting for the implementation of bitcoin. “There are a lot of uses for bitcoin here,” Merger says. “Probably the number one is remittances – people who live in foreign countries who send money back home – because there are no transaction fees with bitcoin. The biggest use for bitcoin in the world now is for donations and charity. You can pay someone 50 cents for free, which you can’t really do with other payment methods. I’d really like to see that take off in Cambodia, because there are so many charities here. The problem is that it’s just not user friendly yet. But it’s growing, the industry is young. Once the government learns more about it and it evolves a bit more, I truly believe that Cambodia is going to be really excited about it. It’s the decentralised peer-to-peer revolution.”

Josh Bouw, International Director of BlackCoin, Cambodia’s only other widely circulating cryptocurrency, maintains a similar outlook, considering bitcoin’s additional utilisation at a personal level.

“Many of us have to travel a lot with work. When I go to conferences overseas, I never bring local currency into another country,” Bouw says. “I take my riel and USD, I buy bitcoin, then I go the foreign country and exchange it for the local currency. Because otherwise I am paying something ridiculous, like 12%, just to change my money.”

For Bouw, however, BlackCoin is the cryptocurrency of choice. Since its conception almost one year ago, Josh has represented and traded with BlackCoin as his preferred alternative tender due to the qualities it possesses, which bitcoin lacks.

“I didn’t think bitcoin would last because of how the technology was set up – the economics just didn’t make sense.” Josh explains. “The method that bitcoin uses is “proof of work,” or mining, which earns bitcoin. It fluctuates dramatically because of this. It’s also grown to the point where people have learned how to exploit mining– there are computers that have been created specifically to mine bitcoin at a more efficient level. BlackCoin doesn’t have these problems because it doesn’t use mining, but ‘proof of stake’. Therefore, it’s been pretty stable since it began almost a year ago. We also hope to implement compound interest with BlackCoin, so the longer you have your coins open on the network, the more value you’ll get back.”

Early last year, BlackCoin announced that they had secured ATM terminals which would dispense and exchange cryptocurrencies within Phnom Penh, provisionally located at Central Market and Tuol Tompuong. The plan has since been deferred until demand is high enough to warrant costs involved.

“Those were supposed to come, but when we looked into it, the rental costs were quite high and the user base would have had to have been much higher to validate their use. It would be awesome to have the ATMs here, but right now it’s better to do it person-to-person until the user base builds up. Right now, people can call me and I’ll meet with them to trade, but when it gets to the point where that becomes too much, having an automated system would be a Godsend.”

The cryptocurrency conversation, it seems, is rooted in speculation and framed within the future tense. Both Merger and Bouw agree that, while it is impossible to say exactly how much sway cryptocurrencies like bitcoin and BlackCoin will have over the Cambodian market, they will inevitably exist, though in what capacity is yet to be revealed.

“There’s a bit of a lull now, but the longterm trend is positive,” Merger states. “It’s a revolutionary technology. It’s now just a matter of how we’re going to utilise that technology. We’re just sort of waiting out to see what happens next. The potential for bitcoin is there and I think there’s a lot more bitcoin user activity in this country than I even realise.”

Bouw agrees, “Cryptocurrency is the future of the economy. It might not be bitcoin, but it will be something similar to it – a currency system that will be improved and regulated. There are a lot of ways it could go, but either way I think cryptocurrency will always be here.”

Smiling, Bouw adds, “I know people have made quite a bit of money off the work we’re doing. I’ve been sent about $15,000 out of the blue and thought, ‘What the hell is this?’ ‘Who did this and why?’ There was just nothing said about it. I’m still wondering who did it, but I’m pretty sure it was someone who was pretty grateful for what they got through buying and selling with BlackCoin.”

“Sleepy.” “Laid-back.” “An escape from the big city buzz.” Pick up any guidebook and that’s about the limit to which Kampot will be depicted. It’s not untrue of the town: the communal sigh of relief among passengers as the bus rolls in over the tranquil river is often audible. These observations. however, hardly reflect the deeper, richer qualities of the town and its people. Spend a little time here, listen carefully, and soon you will hear and feel a buzz of an altogether unique kind. This is the collective energy of Kampot’s new wave of artists – illustrators, writers, musicians and curators – who, in the past few years, have steadily begun to redefine the town as an all-inclusive, unrestrained, creative mecca.

Having moved to Cambodia in 2013, Kampot-based illustrator and tattoo artist Natalie Phillips has watched as the city has prospered in population and, subsequently, creativity.

“A lot of people are investing in Kampot right now and the art scene seems to be growing along with the town. In the last six months we’ve gotten an art venue (Lightbox gallery), two tattoo shops and a screen-printing studio. Around town in bars and cafes, I’ve definitely met a lot more artists that have recently moved here.”

While population growth is indeed necessary for any cultural “scene” to flourish, it seems Kampot has reached that magic balancing point, at which it now has the capacity to support such subcultures, while retaining the peaceful charm that initially attracted the creatively minded.

Katharina Glynne, founder, curator and events manager at Kampot’s Lightbox gallery has been organising and showcasing art exhibitions and workshops since its conception in mid-2014. Last year’s Made In Cambodia event (featuring performances from Tiny Toones, KlapYaHandz and Skateistan) attracted impressive audiences from both Phnom Penh and Siem Reap, significantly accelerating wider recognition of the gallery, as well the artistic potential throughout the town. With infectious passion and enthusiasm, Katharina elaborates on the creative opportunity afforded by Kampot’s current state of developmental equilibrium.

“Kampot has a history of attracting creatives – especially expats – because it’s quiet. It’s been considered for many years as a hideaway for people writing novels or those who prefer spending more time at their canvases than dodging tuk-tuks in Phnom Penh. So I think it’s made a fertile ground for growing an arts scene over the years. But it’s only now that a centralising force is drawing these people together that a community is actually being fostered. What we’re seeing is not just creative individuals working away at their own endeavours, but people collaborating to create and celebrate arts and creativity. What’s really exciting about Kampot is that it’s sort of teetering on the side of development – it’s growing rapidly, but not too much is yet going on. Therein lies the charm of Kampot, but therein lies the opportunity to make something happen.”

And if there’s one name which is synonymous with “making things happen” it’s the multi-tasking, visionary frontman of Cambodian Space Project, Julien Poulson. With his animated imagination on permanent overdrive and several fingers on the pulse, it’s unsurprising that his recent experience in Kampot was enough to spark yet another creative initiative to add to his repertoire.

Julien describes the idea behind his latest baby, Kampot Arts and Music Association, as a platform to “create an umbrella to place many of the arts projects I’m personally involved in. It’s also an opportunity to create a professional association to represent, present and promote local work to the international audience. The idea to set up KAMA in Kampot really leads on from the good experience of working here to create Hanuman Spaceman last year, and I feel the time is right to do this. It will take time to take shape and deliver results, but we’ve got a long-term plan and vision, as well as a great environment to work in.”

Originally planning to workshop, present and premiere the “psychedelic jungle cabaret” Hanuman Spaceman in vocalist Channthy Kak’s remote village in Prey Veng province, Julien said he opted instead for Kampot “because of all the facilities available and our local contacts, including Katharina Glynne, who did a lot of the leg-work ahead of the team arriving. The opportunity to work with Kampot Traditional Music School was also amazing and the results were beyond our initial expectations.”

Julien says it was way back in 2007 when he first noticed the potential in the Kampot arts scene through visiting and learning about the work of Epic Arts, a UK-founded inclusive arts organisation. Having watched the town transform over the years since, Julien remarks, “The place has changed a lot, evolving into a popular backpacker destination with far more hipster types around, Western style cafes and groovy stuff… a great place for a continually developing arts scene, and because of this, attracting all sorts of artists from abroad. Hopefully, this influx will have a positive impact on the local Cambodian artists too, and we’ll see new ideas emerge.”

Indeed, the growth of an arts scene catalysed and maintained by a predominantly Western community raises a number of questions regarding its impact on the local community. Katharina maintains that, so far, her experience of involving and engaging Khmer audiences at music and arts events in Kampot have been nothing but positive.

“One thing that I have noticed with the creative events that Lightbox and others have done, and this whole creative energy that has started to circulate around Kampot, is how well it’s been received. There’s a real energy and excitement towards the cultural happenings that are emerging amongst not just the tourists and the expats, but especially amongst the locals – young, old and everything in between. We’ve had people as young as two years old, all the way through to my neighbour, the grandpa of the neighbourhood who’s hovering somewhere around the late 80s, attend our events with enthusiasm and speak excitedly about the creative energy that seems to be emerging.”

She adds, “What we’ve been especially aware of at Lightbox is that we want to make events accessible, open and approachable, above all, for the Khmer audience, so we’ve always focused on advertising bilingually with images that are clear and appealing, and we’ve found that the flyers are well received.”

Phnom Penh’s well-established French-born street artist Chifumi attests to this observation. Reflecting on his time creating murals in Kampot shortly after painting at the MIC event, he says, “The atmosphere [following MIC] was totally insane, so we absolutely wanted to stay longer in town and paint on the streets. As it is not in Phnom Penh, it was really easy to get permission – dealing with the walls’ owners was no problem. The locals were really friendly and the neighborhood was so nice. All the community and neighbours were pleased to see us there. Local kids were playing around and we quickly became an attraction. As we were painting three days in a row, they started to get to know us and came day by day to check the works’ progress, staying with us for very long periods, just watching.”

By all accounts, Kampot is irrefutably undergoing an artistic revolution of some kind, with positive outcomes for the most part. However, is there a chance that the very draw card of this humble city may eventually lead to its undoing? As Kampot’s laidback, sultry vibe continues to attract more and more creative individuals, this expansion must surely incur some serious long-term implications for the city’s artists, whose income is at least partially dependent on low competition.

Natalie reflects, “The only negative outcome I could see to a larger art scene would be unrealistic expectations – it can be hard to make a living as an artist anywhere in the world. I’m not sure how many creative types the town can support, if that’s your sole source of income.”

Furthermore, as the city’s art scene grows, so too does the population as a whole. Katharina asserts, however, that this is something of which the citizens of Kampot are fully aware and ready to steer in a positive direction, through collaboration rather than competition.

“What myself and quite a few other people in the community recognise is that we have the opportunity for really ethical, positive development in Kampot. We don’t want to turn into the next Sihanoukville – as much as we love Snooky! It’s unlikely though. Kampot is geared towards developing in an artistic and cultural sense. A place where people can come to celebrate alternative events and work together to keep building upon and nourishing the creative community we have created here.”