- The Philippines intends to issue a “wholesale” digital currency (Wholesale CBDC) within two years.
- The country’s central bank said it has no plans to use blockchain technology as the basis.
- The authorities have no plans to issue a retail version of CBDC.
The head of the Central Bank of the Philippines Eli Remolona Jr. said that the country’s authorities plan to issue a “wholesale” digital currency (wholesale CBDC) within two years, the Inquirer writes.
A spokesman for the institution ruled out the use of blockchain for the project. According to him, other banking organizations have already tried to apply the mentioned technology to launch CBDC and did not achieve a positive result.
The Central Bank of the Philippines believes that wholesale trading using digital currency will improve the efficiency, safety and security of payments. However, the use of CBDC in retail transactions may pose additional risks to the banking sector.
In April 2022, the Central Bank of the Philippines first announced a project to launch a “wholesale” digital currency. The program was called CBDCPh. Its main goal was to conduct a comprehensive review of CBDC, as well as an assessment of the payment instrument in terms of the national financial system.
The Philippines is not the only country that is moving forward with the study of this payment instrument. In February 2024, it became known that the Indian authorities intend to analyze offline solutions for the implementation of CBDC.
It is also worth noting that several US states have not recognized the central bank’s digital currency. In Utah, South Carolina, South Dakota and Tennessee were filed bills in which CBDC is not recognized as a means of payment or exchange.
Recall, we wrote that the politician Donald Trump promised to ban the creation of a digital currency of the central bank.
