The Philippines’ central bank governor announced the launch of a CBDC initiative at a joint event held by the Bangko Sentral ng Pilipinas (BSP) and the Alliance for Financial Inclusion earlier this month, according to a speech transcript published earlier this month. The effort aims to improve “the payment system’s safety, reliability, and efficiency,” according to BSP chief Benjamin Diokno.
The CBDC would help with monetary assistance programs operated by the government.
The BSP chief went on to say that CBDCs might have a big impact. The BSP governor stated that a CBDC would help with government-run cash assistance programs and that he is certain that it could be utilized to provide urgent assistance to the country’s most disadvantaged citizens.
The governor did point out, however, that monetary authorities and regulators would need to develop the “necessary skills and technological capability” in order to implement CBDCs successfully and manage the risks connected with them.
The country has no immediate plans to issue a CBDC.
It is still unknown whether the Philippines will pursue the creation of its own digital currency following the pilot. The BSP “has no intentions to adopt a CBDC in the short future,” according to the central bank governor,
“mainly because the population remains overwhelmingly cash dependant given the country’s efficient”
“and effective payment and settlement infrastructure.”
Other central banks, including the US Federal Reserve, have been conducting research. Then, and development in the CBDC arena, prompting the central bank’s statement. China debuted its digital yuan during the recent Winter Olympics, following a year-and-a-half of preparations.
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