The Philippines is one of the nations that are eyeing the launch of a state-backed digital currency. Benjamin Diokno, governor of the nation’s central bank Bangko Sentral ng Pilipinas (BSP), has recently opened up about the nation’s stance towards digital tokens stating that these tokens “expand reach and lessen costs of financial services” while reducing fiat use.
Speaking with Bloomberg in an email interview, Diokno stated that he believes the underlying technology behind cryptocurrencies can benefit the nation’s finical services while it is en route to explore the implications of deploying its own cryptocurrency.
The governor continued that the nation’s research regarding CBDC includes “a comprehensive discussion” on matters like price stability and legal hurdles at a time when other nations like the EU and China are also considering their respective state-backed digital currencies.
Earlier in July, the BSP announced the creation of a working group that will explore digital currencies and its various policy implications. Diokno had then said that the findings of this working group will have to be taken into consideration “before making any decision in this regard.”
However, Diokno had also stressed on the fact that the nation is much more interested in the applications of blockchain technology, adding:
“Blockchain continues to elicit interest around revolutionizing the delivery of financial services by providing an efficient, secure, and robust means of payment.”
As of now, the central bank will also study the impact of such currency on the existing domestic digital-token market and the broader financial system, he said.
The nation has already implemented a flexible regulatory system for digital assets, creating a strong foundation for relatively wider use and trading of cryptocurrencies. At present, the country houses 16 licensed digital currency exchanges.
Diokno concluded that while there has been no formal agreement with other authorities in the nation to collaborate on the study and development of CBDCs, “this will be a continuing process of knowledge-sharing and close communication.”