The Central Bank of the Philippines rules out the creation of a blockchain-based CBDC

  • The Philippines intends to issue a “wholesale” digital currency (Wholesale CBDC) within two years.
  • The country’s central bank said it does not plan to use blockchain technology as a basis.
  • The authorities do not intend to release a retail version of CBDC.

The head of the Central Bank of the Philippines, Eli Remolona Jr., said that the country’s authorities plan to issue a “wholesale” digital currency (wholesale CBDC) within two years, the Inquirer writes.

A representative of the institution ruled out the use of blockchain for this project. According to him, other banking organizations have already tried to use the mentioned technology to launch CBDC and have not achieved a positive result.

The Philippine Central Bank believes that wholesale trading using digital currency will improve the efficiency, security and reliability of payments. At the same time, the use of CBDC in retail transactions may create additional risks for the banking sector.

In April 2022, the Central Bank of the Philippines first announced a project to launch a “wholesale” digital currency. The program is called CBDCPh. Its main goal was to conduct a comprehensive review of CBDC, as well as an assessment of the payment instrument in the context of the national financial system.

The Philippines is not the only country that is moving forward in exploring this means of payment. In February 2024, it became known that the Indian authorities intend to analyze offline solutions for the implementation of CBDC.

It’s also worth noting that several US states have not accepted central bank digital currency. Bills have been filed in Utah, South Carolina, South Dakota and Tennessee that would not recognize CBDC as a means of payment or exchange.

Let us recall that we wrote that politician Donald Trump promised to ban the creation of a central bank digital currency.

USA News Today