The Central Bank of the Philippines, Bangko Sentral ng Pilipinas (BSP) has publicly declared its intention to inaugurate a research program to explore the world of Central Bank Digital Currencies (CBDC). The governor, Benjamin Diokno tagged the program as Project CBDC-Ph.
The general CBDC program is rumored to be past its pilot stage where the CBDC design, make-up, technological know-how, risk, consequence, organizational capacity, policy, security, market capitalization and many more are currently being tested.
Intense Research on Philippines Wholesale of CBDC
Bangko Sentral ng Pilipinas has no intention of introducing its CBDC yet but has been carrying out case studies on the digital asset that it may be involved in the wholesale CBDC niche. BSP’s focus is to demystify the level of security and liquidity rate associated with CBDCs.
The governor in an interview talked about how effective, stable, efficient and reliable the country’s payment systems are. He attributed the BSP hesitancy to introduce a digital Peso to all of these, saying the population is deeply dependent on the country’s economy.
Initially, three use cases on CBDC had been investigated to gain clarity on payments across borders, security of equity, and liquidity. The BSP has not reached a decision to introduce one, however, the need to create a CBDC map has led to this present research.
The Central Bank of the Philippines is looking at exploring payment systems across borders and is today considering Singapore for such collaborations. The two recognized Asian cross-border CBDC wholesale initiatives are Project Dunbar from Singapore and M-CBDC Bridge Project. Although the country is tending towards the M-CBDC Bridge Project more.
Pushing for Global Standard in CBC Creation
As there is a raging craze for crypto recognition, legalization, and CBDC introduction, the governor of the Bank of Japan (BoJ) Haruhiko Kuroda, stated revealed the crucial need for major government agencies to collaborate and come up with standards for issuing CBDCs.
BSP may likely consider Kuroda’s suggestion, seeing that they are conducting thorough research so as not to leave any stone unturned in the creation of the CBDC roadmap. Further investigations will be carried out as suggested by AMRO to compare the impact the CBDC might have on the financial system.