The Philippines has joined the list of countries considering the issuance of a national digital currency, commonly known as Central Bank Digital Currency (CBDC). The talks for a potential Philippines digital currency come at a time where CBDC is much discussed amongst global central banks, with the likes of China nearing a complete launch of theirs.
Philippines digital currency in the first phase
Similar to other countries, the central bank of the Philippines has taken what seems to be the first approach towards the development of national digital currencies. Announced on Wednesday, the bank has formed a new committee, tasked to examine the policy implications and feasibility of issuing a Philippines digital currency.
BNN Bloomberg reported the development, citing Benjamin Diokno, the Governor of Philippines’ central bank, which is locally known as Bangko Sentral ng Pilipinas (BSP). During an online briefing, Diokno explained that they “have to first look at the findings of the group before making a decision.”
The newly formed committee is expected to report their initial findings from the study by next month. Amid the results, the bank will probably decide on whether to continue in the development of the digital currency.
Banks fear private-owned digital currencies
While speaking about the Philippines digital currency, the Governor noted that one of the problems central banks have with private-owned digital currency is the assumption that they can pose certain risks to monetary authorities. Many banks also claim that digital currencies can impact the flow of fiat currencies; however, Diokno said otherwise. He “doesn’t see the prevalence of digital currencies affecting demand for fiat money yet.”
“Cryptocurrency for us has always been beyond the asset itself but more on the blockchain technology that underpins it,” Diokno added.
Many other world’s major central banks considering the development of national digital currency include the Bank of Japan (BOJ), Bank of England (BOE), and others.