The central bank of the Philippines, locally known as Bangko Sentral ng Pilipinas (BSP), intends to issue its own digital currency backed by the central bank.
The Central Bank of the Philippines is looking to create its own CBDC. According to report Bloomberg, the central bank created a committee to study digital currencies and its political implications. Governor Benjamin Diokno said the central bank would review the committee’s findings before making any decisions. The committee is expected to announce the preliminary results of the study next month. Several other central banks in different countries are also working on centralized digital currencies.
The Central Bank of the Philippines is experimenting with CBDC
While digital currency continues to grow in popularity, Governor Benjamin Diokno said the Philippines has yet to see a decline in demand for fiat currencies.
“Cryptocurrency has always been more than just an asset to us, but more of a blockchain technology that underpins it.”
The governor said.
The governor also praised the blockchain initiative taken by the Philippine Treasury Office. In collaboration with the Union Bank of the Philippines and the Philippine Digital Asset Exchange, the Office launched a blockchain application for the retail distribution of bonds. This application, called Bonds.PH, aims to make it easier to invest in bonds, even for people without a bank account.
Central banks are still experimenting with CBDC.
Central banks around the world are constantly experimenting with central bank digital currencies. Several banks have made impressive progress in this area and some are just starting to work. People’s Bank of China is set to become the first major central bank in the world to issue CBDC. Currently, PBoC is testing its national digital currency, known as DC / EP (Digital Currency Electronic Payment), in several cities across the country.
Earlier, the Bank for International Settlements released a report saying that the ongoing global pandemic has prompted central banks to speed up CBDC research as people avoid transactions in physical money.
Regarding the European market, the Central Bank of France has presented a list of companies selected to start their experiments around the “digital currency of the central bank” (CBDC).