Details of Philippine CBDC pilot project disclosed
The Bangko Sentral ng Pilipinas (BSP) is set to conduct a pilot project called Project Agila to study wholesale central bank digital currency (wCBDC). Mamerto Tangonan, the deputy governor for payments and currency management sector at BSP, revealed that the project is expected to be completed by the end of this year. According to Tangonan, the pilot project aims to democratize access to securities and investment instruments, making them more accessible to everyone.
Six domestic banks, including BDO Unibank, China Banking Corp., Land Bank of the Philippines, Rizal Commercial Banking Corporation, Union Bank of the Philippines, and Maya Philippines, are participating in the pilot project alongside BSP. Through the use of wCBDC, the project focuses on transferring funds among these banks. Tangonan also expressed interest in exploring the use of wCBDC for higher value-adding services such as securities settlement.
BSP Governor Eli Remolona stated earlier that the central bank was only considering a wCBDC due to concerns about bank disintermediation and other issues associated with the potential issuance of a retail CBDC. Remolona emphasized that the wCBDC would not operate on a blockchain.
The Philippines first expressed its interest in issuing a CBDC in 2020. Following the BSP Monetary Board’s positive initial assessment of a wCBDC, they planned to conduct pilot tests starting in 2022, initially known as Project CBDCPh. The announcement of the pilot project, Project Agila, was made in April 2022.
In 2023, the Philippines participated in a pilot study involving the Digital Dollar Project, Western Union, and BDO Unibank to explore the use of retail CBDC for remittances. The study found that a CBDC would lower costs, increase transparency, and promote competition. One challenge highlighted was the need for faster transaction speeds, especially for remittances received after working hours.
BSP’s wCBDC pilot project aims to promote financial inclusion and explore the potential benefits of using CBDCs for various financial services. The results of the project, which will be completed by the end of the year, will provide valuable insights for the future of digital currency in the Philippines.
9 thoughts on “Details of Philippine CBDC pilot project disclosed”
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Kudos to the Philippines for embracing technological advancements in the financial sector. The wCBDC pilot project is a testament to the country’s progressive mindset.
The findings from the pilot study involving the Digital Dollar Project and other partners demonstrate the positive impact that CBDCs can have on remittances. Exciting possibilities for the future!
Lower costs, increased transparency, and enhanced competition are just some of the benefits that a wCBDC can bring to the financial landscape. Exciting times ahead! 💰🚀
I don’t see how a digital currency will make securities and investment instruments more accessible to everyone. This seems like a far-fetched idea.
The use of wCBDC for securities settlement has the potential to revolutionize the investment landscape, making it more accessible and efficient. Exciting times lie ahead!
Financial inclusion is a crucial aspect of economic development, and I’m glad that the BSP’s wCBDC pilot project aims to promote it. Kudos to the team!
I’m skeptical about the potential benefits that CBDCs can bring to financial services. It seems like a lot of hype without concrete evidence.
The idea of a digital currency seems unnecessary. We already have existing payment systems that work perfectly fine.
Faster transaction speeds are important for remittances, but I don’t think a CBDC is the solution. There are other ways to address this issue.