Diokno says 'no urgency' in using central bank digital currencies

ABS-CBN News

Posted at Mar 14 2022 10:56 AM | Updated as of Mar 14 2022 11:03 AM

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MANILA - Bangko Sentral ng PIlipinas Governor Benjamin Diokno on Monday said there is no urgency in using central bank digital (CBDCs) since the current payment system is "working very well."

CBDCs are digital versions of legal currencies and are being explored by central banks globally. 

"We’ve been studying this and we’re currently studying the outcome in other countries and we also and we’re also talking with our regional counterparts," Diokno told ANC.

"It depends on the outcome of further study. There’s no urgency for this, our settlement and payment systems are working very well. I think we’ll maximize the benefit of our existing payment system," he added. 

If in case the BSP decides to use CBDCs, it will be for wholesale transactions and not for retail, the central bank chief said. 

Wholesale transactions involve government agencies or banks but not individuals, he said.

South Korea and China are among those whose central banks are currently piloting the use of CBDCs.

The BSP, meanwhile, is pushing for other digitalization efforts to boost financial inclusion, such as the use of online payments InstaPay and PESONet as well as the use of digital banks.