In a speech transcript published earlier this month, the Philippines’ central bank governor announced the rollout of a CBDC project at a joint event that was organized by Bangko Sentral ng Pillipinas (BSP) and the Alliance for Financial Inclusion. According to BSP chief Benjamin Diokno, the project aims to improve “the payment system’s safety, resiliency, and efficiency.”
The CBDC would assist in government-run cash assistance programs.
The BSP chief went on to highlight the potential impact of CBDCs. The BSP governor noted that a CBDC would assist in government-run cash assistance programs and is confident that this can be used to offer immediate support to vulnerable segments of the country’s society.
However, the governor did highlight that the monetary authorities and regulators would need to build the “requisite skills and technological capacity” to effectively deploy and manage the risks associated with CBDC issuance.
The country has no plans to issue a CBDC in the near term.
It is still not confirmed if the Philippines will move on to create its own digital currency after this pilot. The central bank governor revealed in a recent interview that the BSP “has no plans to introduce a CBDC in the near term primarily because the population remains heavily cash reliant given the country’s efficient and effective payment and settlement systems.” The central bank’s announcement follows continued research and development in the CBDC space from other central banks, including the US Federal Reserve. China introduced its digital yuan during the recent Winter Olympics, building on the rollout that took place over the last year and a half.