The Philippines Central Bank is Considering to Issue its Own Digital Currency
The Philippine Central Bank (PBC), the country’s central bank, will continue to monitor digital currencies closely and is in the process of introducing its central bank digital currency (CBDC).
According to a report in the Philippine Daily Inquirer, the Philippine central bank, Bangko Sentral ng Pilipinas (BSP), is considering issuing its digital currency. Bloomberg first reported the news on Wednesday, saying the central bank had formed a committee to study the feasibility of a digital currency for the Philippines and other countries. Governor Benjamin Diokno said the central bank would look at the committee’s findings before making a decision. The group is expected to announce the first results of the study next month, with a final decision expected in the second half of 2017.
The central bank itself has said that policymakers cannot ignore the growth of cryptocurrencies and must consider whether it makes sense to issue their digital currency at some point. In a statement last November, the authority said cryptocurrencies were a “hidden payment system” that was not supported by any institution and posed significant risks to its users. One possibility is that only central banks issue units that could be converted directly into cash or reserves.
The Philippine Central Bank (PBC), the country’s central bank, will continue to monitor digital currencies closely and is in the process of introducing its digital currency.
Back in February 2017, the BSP (Philippine Central Bank) announced its intention to regulate local Philippine Bitcoin exchanges as a remittance company officially and to recognize Bitcoin as a legitimate payment method by issuing its digital currency.
While the spread of digital currencies is increasing, Diokno said he doesn’t see demand for fiat currencies waning in the Philippines. He added: ‘Cryptocurrencies have always been the most popular form of payment, especially with the blockchain technology behind it. Indeed, just yesterday, Diokno praised the Philippine Treasury’s blockchain initiative for its “very successful” blockchain project.
The bureau is currently working on a blockchain-based app to issue the Philippine peso, the country’s first digital currency. The app, which is available for download from the Google Play Store and App Store, is designed to facilitate bond investments and even more.
