Philippines Central Bank Contemplating Issuing its Digital Currency

Sandeep  |  Jul 29, 2020

Philippines Central Bank, better known as Bangko Sentral ng Pilipinas (BSP) locally, is reportedly considering issuing its own digital currency. According to Governor Benjamin Diokono, the Philippine Central Bank has deployed a committee to analyze the policy implications of launching its digital currency.

He said in a virtual briefing that the findings of the committee will have to be evaluated before any decision is made. The initial findings of the study may be revealed as early as next month.

Philippines Central Bank Is Not the First

With the announcement, Philippines Central Bank has joined the group of some of the major central banks around the globe that are planning to launch their digital currencies. While the Bank of Japan and Bank of England have already joined hands to analyze the feasibility and potential of developing their digital currencies, China has initiated a pilot program for its currency’s digital version.

The rat race amongst countries for digital currencies apparently stems from their insecurity about companies launching their digital tokens, which they believe could pose a challenge to their monetary authority.

Digital Currency Won’t Affect the Demand for Fiat Money: Diokno

Diokno said that he doesn’t see the demand for fiat money waning due to the prevalence of digital currencies. He said that while cryptocurrency is a great asset, the blockchain technology behind it is what made it more valuable than its monetary value.

In fact, just yesterday, Diokno extolled a blockchain initiative by the Philippine Bureau of Treasury. The bureau has launched a blockchain-based application for retail bond distribution in collaboration with Philippine Digital Asset Exchange and Union Bank of the Philippines. The app, known as Bonds.PH, claims that it can ease the process of bond investing.

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