Philippines, Central Bank Governor Eli Remolona Jr. According to the plan announced by a central bank digital currency within the next two years (CBDC) Preparing to launch.
Philippines Planning CBDC Without Blockchain
However, the country does not intend to use blockchain or digital ledger technology, which is often associated with virtual assets, for this purpose.
President Remolona told reporters that other central banks had tried blockchain technology, but the results were not satisfactory.
This stance appears to be in line with the central bank’s strategy of staying away from blockchain-based solutions for its CBDC initiative.
The central bank’s decision underlines its cautious approach to digital currency adoption.
Individual CBDCs that are accessible to the public are not on the agenda of the central bank of the Philippines. Instead, the focus is on CBDCs designed for institutional use.
The journey towards CBDC in the Philippines began in 2020, when the central bank launched an exploratory study on the concept. Despite growing interest in CBDCs globally, concerns regarding their risks remain.
The Bank for International Settlements (BIS), a global forum for central banks, warned in November that institutions were inadequately prepared to manage the risks associated with CBDCs.
In contrast, a wholesale CBDC could improve the efficiency and security of domestic and cross-border payments.
“The decision is to limit wholesale sales. No retail,” Mayor Remolona said, emphasizing the BSP’s commitment to maintaining financial stability while exploring the benefits of digital currency innovation.
*This is not investment advice.
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