BSP eyes testing central bank digital currency in last quarter of 2022: official | ABS-CBN
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!
Business
BSP eyes testing central bank digital currency in last quarter of 2022: official
BSP eyes testing central bank digital currency in last quarter of 2022: official
Jessica Fenol,
ABS-CBN News
Published Apr 28, 2022 12:39 PM PHT
|
Updated Apr 28, 2022 12:50 PM PHT
MANILA - The Bangko Sentral ng Pilipinas on Thursday said it was eyeing the pilot test of the central bank digital currency by the last quarter of the year.
MANILA - The Bangko Sentral ng Pilipinas on Thursday said it was eyeing the pilot test of the central bank digital currency by the last quarter of the year.
The pilot for the project called CBDCPh aims to assess the impact of the new financial tool on the country's economy and monetary policy, Bangko Sentral ng Pilipinas Deputy Governor Mamerto Tangonan said during a televised briefing.
The pilot for the project called CBDCPh aims to assess the impact of the new financial tool on the country's economy and monetary policy, Bangko Sentral ng Pilipinas Deputy Governor Mamerto Tangonan said during a televised briefing.
"Tayo po ay sinisikap po natin na makapag pilot tayo ito pong last quarter ng taon na ito. Kailangan natin mag pilot para makita natin kung among magiging epekto nito sa ekonomiya at monetary policy," Tangonan said.
"Tayo po ay sinisikap po natin na makapag pilot tayo ito pong last quarter ng taon na ito. Kailangan natin mag pilot para makita natin kung among magiging epekto nito sa ekonomiya at monetary policy," Tangonan said.
(We are trying to pilot on the last quarter of the year. We need to do this, to see what would be its effect to the economy and the monetary policy)
(We are trying to pilot on the last quarter of the year. We need to do this, to see what would be its effect to the economy and the monetary policy)
ADVERTISEMENT
He added that the BSP wants to see if it can replicate the benefits seen by other central banks such as faster transactions.
He added that the BSP wants to see if it can replicate the benefits seen by other central banks such as faster transactions.
Unlike cryptocurrencies like bitcoin which are unregulated and don't have a central issuing authority, a CBDC is issued and regulated by a nation's monetary authority or central bank. While cryptocurrencies tend to fluctuate wildly in value, a CBDC's value is pegged to a nation's currency.
Unlike cryptocurrencies like bitcoin which are unregulated and don't have a central issuing authority, a CBDC is issued and regulated by a nation's monetary authority or central bank. While cryptocurrencies tend to fluctuate wildly in value, a CBDC's value is pegged to a nation's currency.
Tangonan meanwhile emphasized that its digital currency would be used for wholesale or large transactions and not for retail.
Tangonan meanwhile emphasized that its digital currency would be used for wholesale or large transactions and not for retail.
The use of blockchain technology and cryptocurrency has inspired central banks globally to explore CBDCs.
The use of blockchain technology and cryptocurrency has inspired central banks globally to explore CBDCs.
Currently, other central banks, such as China and South Korea are also testing the use of CBDCs.
Currently, other central banks, such as China and South Korea are also testing the use of CBDCs.
The BSP has been proactive in its digitalization approach to drive financial inclusion. It has released policies regulating e-money issuers as well as approved digital banks as a new banking category.
The BSP has been proactive in its digitalization approach to drive financial inclusion. It has released policies regulating e-money issuers as well as approved digital banks as a new banking category.
It has also implemented online fund transfers InstaPay and PESONet under the country's National Retail Payment System or NRPS.
It has also implemented online fund transfers InstaPay and PESONet under the country's National Retail Payment System or NRPS.
Under its roadmap, the BSP aims to digitalize 50 percent of payments and onboard at least 70 percent of adult Filipinos to the formal financial system by 2023.
Under its roadmap, the BSP aims to digitalize 50 percent of payments and onboard at least 70 percent of adult Filipinos to the formal financial system by 2023.
But BSP Governor Benjamin Diokno said the accelerated pandemic-driven adoption of digital payments could help the central bank achieve its digitalization goals earlier than expected.
But BSP Governor Benjamin Diokno said the accelerated pandemic-driven adoption of digital payments could help the central bank achieve its digitalization goals earlier than expected.
ADVERTISEMENT
ADVERTISEMENT