The Governor of the Philippines’ central bank announced the launch of the country’s Central bank digital currencies (CBDC) pilot program.
Philippines set to launch CBDC pilot program
While speaking at a joint event organized by the Philippines’ central bank, Bangko Sentral ng Pilipinas (BSP), and the Alliance for Financial Inclusion, Benjamin Diokno, the BSP Governor announced that the country is set to launch the pilot program for its CBDC, Project CBDCPh.
Diokno believes that the new project will improve the safety, efficiency, and resilience of the country’s payment system. He also talked about the key goals the Philippines is aiming through this initiative by stating:
“The project aims to build organizational capacity and hands-on knowledge of key aspects of CBDC that are relevant for a use case around addressing frictions in the national payment system.”
Notably, the BSP began an exploratory study in 2021, to help develop more collaborative and thorough research of CBDC’s nature and consequences for the entire financial system.
The governor also underscored the importance as well as the potential impact of CBDCs. He pointed out that the COVID-19 pandemic showed the necessity of account-based financial support distribution. The country believes that CBDCs have the power to support the most vulnerable segments of the world.
New types of money are challenging traditional monetary systems as the financial world continues to evolve. CBDCs have recently caught the interest of a number of countries, including the Philippines. Irish cryptographic security company eCurrency Mint, which is involved in CBDC development for countries like Jamaica and Senegal, helped the Philippines in the development phase.
As per a study released by the ASEAN+3 Macroeconomic Research Office (AMRO), three countries have launched their CBDCs for commercial use, 14 have launched or completed CBDC pilot testing with 16 in the development or proof-of-concept stage. The data also reveals that another 40 countries are undertaking research on CBDCs as of December 2021.
China has been the early bird and recently launched the digital yuan pilot program for Android and iOS users.
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