Philippine Central Bank Considers Issuing Digital Currencies

The Philippine central bank has created a committee to look at the feasibility and policy implications of issuing its own digital currency.

By · Aug 1, 2020 . 5min read

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Photo by RJ Joquico on Unsplash

The Philippines has become the latest country to view the opportunity of issuing its central bank digital currency, or CBDC. According to a report by Bloomberg, the Philippine central bank, or Bangko Sentral ng Pilipinas (BSP) has established a committee to acknowledge the implication of such a move.

In a virtual briefing, Governor Mark Diokno revealed the nuances of the same. He explained that the group initially looked at the usefulness and potential policy implications of issuing a digital currency.

“We have to first look at the findings of the group before making a decision.”

The first results of the committee’s examination anticipate in August. Diokno himself considers that digitally issued currencies do not necessarily pose a threat to demand fiat money.

Philippines Authorities Gain Expertise in Blockchain

Diokno also restated the opinion of many central banks and governments, which is that blockchain technology is as essential as the cryptocurrencies it assists. While speaking a virtual briefing, the BSP Chief stated that the government has a keen interest in blockchain technology.

A statement from Diokno reads, “Cryptocurrency for us has always been beyond the asset itself but more on the blockchain technology that underpins it.” The Philippine treasury lately launched a blockchain-based application for distributing government-issued bonds. Meanwhile, the local Securities and Exchange Commission has been advising the public against possible scams in the crypto sector.

Countries Trialing the Concept of CBDC

The BSP is not the only central bank to examine the idea of digital currency. Despite the concern that central bank digital currencies (CBDCs) distributed undeviating to customers could cause friction with commercial banks. Moreover, a group including the Bank of England, European Central Bank and Bank of Japan have colluded on assessing the potential of such a concept.

In contrast, China has gone further than most by creating a pilot program for its digital currency. Moreover, the Bank of International Settlements, the International Central bank for central banks, last month published a report saying that central bank digital currencies warranted consideration.

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