According to central bank governor Eli Remolona Jr., the Philippines is expected to release a wholesale central bank digital currency (CBDC) in two years, but the country has no intention of utilising the blockchain or digital ledger technology that powers many virtual assets.
According to Remolona, “Other central banks have tried blockchain, but it didn’t go well,” as the Inquirer published on Monday.
Central banks issue digital tokens known as CBDCs. Whereas wholesale CBDCs are only intended for usage by institutions, retail CBDCs are accessible to the general public. In 2020, the central bank of the Philippines began an exploratory investigation of CBDCs.
The global coordination body for central banks, the Bank for International Settlements, stated in November that the institutions are not adequately ready for the dangers posed by collateralized debt crises (CBDCs).
The Bangko Sentral ng Pilipinas (BSP) recognises that while a wholesale CBDC could increase the effectiveness and security of domestic and international payments, a retail counterpart might worsen bank runs during hard times. “It is decided to restrict it to wholesale. No retail, stated Remolona.