Home Crypto News Philippines to Launch Non-blockchain CBDC

Philippines to Launch Non-blockchain CBDC

14 Feb, 2024 Crypto News

Philippines to Launch Non-blockchain CBDC

The Governor of the Bangko Sentral ng Pilipinas (BSP), Eli Remolona, has disclosed the central bank's plan to introduce a wholesale central bank digital currency (CBDC) within the next few years.

In an interview with local newspaper Inquirer.net on February 12, Remolona elaborated on the BSP's strategy for developing a CBDC.

Contrary to other central banks, the BSP has decided against employing blockchain technology for this project, as Remolona stated:

"Other central banks have experimented with blockchain technology, but the outcomes were not favorable."

Instead, the CBDC will operate on a payment and settlement system owned by the central bank. The BSP will concentrate on a wholesale CBDC, which will be facilitated by banks.

The central bank harbors concerns regarding potential issues associated with retail CBDC, such as disintermediation, bank runs during financial turmoil, and an increased central bank presence. Remolona clarified:

"Our decision is to confine it to wholesale transactions—banks will serve as the sole counterparties, and then, retail transactions will be facilitated through them."

Remolona highlighted the efforts of Sweden and China in developing CBDCs as digital complements to physical cash and "competing cryptocurrencies."

He believes that the Philippines can emulate their progress.

According to Remolona, the CBDC is a definite possibility during his tenure as governor, confirming in response to inquiries from journalists that it could materialize within the next two years.

The Philippines maintains a strict stance on the cryptocurrency industry, safeguarding the local market against foreign entities.

In December 2023, the Philippines Securities and Exchange Commission (SEC) reaffirmed its ban on Binance due to the exchange's unregistered operations in the country.

Despite repeated warnings, Binance has reportedly remained a major cryptocurrency trading platform in the Philippines, with some users praising its local services as "trustworthy and reliable" on social media platforms.

In response to public criticism and arguments regarding Binance's cost appeal to local investors, SEC Chair Kelvin Lee underscored the compliance costs avoided by Binance and advised investors to opt for one of the 17 registered virtual asset service providers.

Sources:

https://cointelegraph.com/news/philippines-introduce-non-blockchain-cbdc-two-years

https://business.inquirer.net/445000/remolona-ph-to-have-digital-currency-in-2-years

https://www.reddit.com/r/phinvest/comments/167fkiq/comment/jyptqbf/?utm_source=share&utm_medium=web2x&context=3

Back to Crypto News
Related articles
SEC Approves Eight Ethereum ETFs

Crypto News

SEC Approves Eight Ethereum ETFs

18 Million Americans Owned Crypto in 2023

Crypto News

18 Million Americans Owned Crypto in 2023

SEC May Approve Three Ethereum ETFs This Week

Crypto News

SEC May Approve Three Ethereum ETFs This Week

Ethereum Soars on Spot ETF Approval Rumor

Crypto News

Ethereum Soars on Spot ETF Approval Rumor

Don’t miss any crypto news

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

By sharing your email, you consent to receiving BITmarket’s newsletter. Read how we process your data in our Privacy policy

You’ve made us very happy 😊

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

Something went wrong 😔

If your problem persists please try contact our support