Philippines Central Bank Keen on Joining Digital Currency Race
The Philippines is keen on joining the digital currency bandwagon.
Blockchain Technology Could Help with Digital Money
According to a recent report by Bloomberg, Philippine central bank Governor, Benjamin Diokno, put his weight behind emerging technologies – including distributed ledger technology (DLT) – in their potential to improve the delivery of financial services.
Notably, the Philippine financial regulator is also assessing the viability of a central bank digital currency (CBDC). For the uninitiated, CBDCs are virtual sovereign currencies that leverage the benefit of cryptocurrencies without compromising on the control of the state over the currency.
Speaking to Bloomberg, Diokno noted that digital tokens can help expand the reach and lessen costs of financial services. The central bank Governor added that CBDCs could also aid the central bank eventually reduce its dependency on the use of fiat money.
Diokno said that the Philippines’ study of a CBDC includes “a comprehensive discussion” on issues including price volatility and legal obstacles. The country’s central bank will also consider the potential impact of a CBDC on the current domestic digital-token market and the broader financial system, he added.
Unlike other Asian countries such as China and India, the Philippines has, until now, displayed a soft stance toward digital currencies. As of today, there are 16 licensed digital currency trading platforms in the country, central bank data suggests.
Diokno noted that while there is currently no official agreement or partnership with other authorities to collaborate on a digital currency, the study on CBDC “will be a continuing process of knowledge-sharing and close communication.”
CBDC Race Continues to Heat Up
The CBDC space is witnessing an increasing number of participants with more and more number of central banks entering the bandwagon.
As previously reported by BTCManager on July 16, Thailand’s central bank is continuing developments on the CBDC project. Notably, the project has reached its third phase of development and the digital currency is already being used for corporate financial transactions.
Similarly, Japan has sped up its efforts to develop its CBDC in the wake of the growing prominence of China’s digital yuan. The report came shortly after the Bank of Japan constituted a new team to research into the possibility of issuing a Japanese CBDC.