Central Bank of the Philippines plans to launch a CBDC without blockchain technology in the next two years

According to the head of the regulator, this is due to the unsuccessful experience of implementation of a distributed registry by other central banks

12.02.2024 - 14:57

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What’s new? The Governor of Bangko Sentral ng Pilipinas (BSP), Eli Remolona, has revealed the regulator’s intention to issue a national cryptocurrency (CBDC) in the next few years. In an interview with Inquirer.net, he revealed that the central bank will not use blockchain technology in this project. According to him, “Other central banks have tried blockchain, but it didn’t go well.” Instead, the CBDC of the Philippines will be powered by the payment and settlement system owned by the central bank.

Material by Inquirer.net

What else is known? Remolona said the regulator’s decision is to limit the CBDC to wholesale trading. So, banks will be the only counterparties and then retail will rely on them. He cited Sweden and China as examples, which are developing CBDC as a digital complement to cash and “rival cryptocurrencies.” He believes the Philippines can replicate their experience.

According to Remolona, the CBDC “would definitely happen” during his gubernatorial term, noting that it could happen in the next two years.

Effective September 1, 2022, the Central Bank of the Philippines imposed a moratorium on the issuance of licenses to new virtual asset service providers (VASPs) for three years. In 2023, the US and Philippine Securities and Exchange Commissions (SEC), together with the Asian Development Bank (ADB), launched a crackdown on cryptocurrency crime.

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