As part of its efforts to strengthen the stability of the country’s payment system, the Bangko Sentral ng Pilipinas (BSP) will start a wholesale central bank digital currency (CBDC) pilot project called CBDCPh.
BSP governor Benjamin Dionko said at an annual policymakers’ roundtable that the central bank’s pilot will examine the possibility of deploying CBDCs for large-scale financial transactions “on a 24/7 basis across a restricted number of financial institutions.”
“Learnings from the pilot will be critical in constructing the BSP’s medium- to long-term”
“roadmap for more advanced wholesale CBDC projects that shall further strengthen the Philippine payment system,”
So, Diokno adds
According to the BSP, digital payment methods would account for over 20.1 percent of monthly retail transactions in the Philippines by the end of 2020, up from 10% in 2018.
Because of the advancement and use of existing digital payment systems, the central bank warned of…
“little perceived additional value” of retail CBDCs in the Philippines.
Wholesale CBDCs, unlike retail CBDCs, are only available through banks and other financial organizations.
According to Diokno, a wholesale CBDC can assist in reducing friction in cross-border money transfers, equities securities payments. Then, and intraday liquidity.
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