Philippines CBDC to Launch in 2 Years as Safer Crypto Alternative

Please fol­low and like us:
Pin Share

The cen­tral bank of the Philip­pines, Bangko Sen­tral bg Pilip­inas, plans to launch a cen­tral bank dig­i­tal cur­ren­cy (CBDC) with­in two years. The bank wants to com­ple­ment phys­i­cal cash and offer a less risky alter­na­tive to cryptocurrencies.

The gov­er­nor of the cen­tral bank of the Philip­pines said it will launch a cen­tral bank dig­i­tal cur­ren­cy that will not depend on blockchains.

Philippines to Launch Blockchain-Free CBDC

The bank will ini­tial­ly offer the tok­enized cur­ren­cy to com­mer­cial banks. The ini­tial goal of the whole­sale CBDC will be to improve the effi­cien­cy, safe­ty, and robust­ness of domes­tic and over­seas payments.

Read more: Cryp­to Reg­u­la­tion: What Are the Ben­e­fits and Drawbacks?

Accord­ing to the bank’s gov­er­nor, Eli Remolona Jr., the bank will not imple­ment the CBDC using blockchain infra­struc­ture. Instead, it will use the Peso Real Time Gross Set­tle­ment Sys­tem, already gov­erned by the Nation­al Pay­ment Sys­tems Act. The Act pro­vides the reg­u­la­to­ry frame­work for funds exchange by institutions.

“Oth­er cen­tral banks have tried blockchain, but it didn’t go well,” Remolona said.

He added that sim­i­lar to the approach by Sveriges Riks­bank, the Philip­pine CBDC would com­ple­ment rather than replace cash. The Swedish cen­tral bank clar­i­fied this in a bul­letin pub­lished in Decem­ber 2023.

How Countries Are Squeezing Crypto With CBDCs

Remolona also explained that the new CBD­Cs would be his bank’s answer to pri­vate cryp­tocur­ren­cies. He cit­ed China’s prov­ing the fea­si­bil­i­ty of a whole­sale CBDC with its e‑CNY tests. Chi­na and sev­er­al oth­er coun­tries have implic­it­ly made cryp­to trans­ac­tions infea­si­ble by pro­mot­ing CBD­Cs or sup­press­ing cryp­to through tough regulations.

philippines wholesale cbdc
Break­down of Whole­sale vs Retail CBDC Efforts | Source: Atlantic Coun­cil

India’s tax sys­tem tar­gets pri­vate cryp­to hold­ers with a 30% tax bur­den. Recent­ly, the gov­ern­ment recent­ly rolled out a heav­i­ly-mon­i­tored CBDC.

Read more: Dig­i­tal Rupee (e‑Rupee): A Com­pre­hen­sive Guide to India’s CBDC

In Jan­u­ary 2023, cryp­to advo­cate Nic Carter high­light­ed covert efforts by the White House finan­cial reg­u­la­tors to suf­fo­cate cryp­to. Amid the 2023 US bank­ing cri­sis, a for­mer US Con­gress­man accused reg­u­la­tors of shut­ting down one of the affect­ed banks for polit­i­cal rea­sons. The New York State Finan­cial Ser­vices Depart­ment denied tar­get­ing Sig­na­ture for its cryp­to busi­ness line.

Even in Hong Kong, where cryp­to reg­u­la­tions were rolled out to much fan­fare in June, cryp­to com­pa­nies must com­ply with rules some have con­sid­ered infea­si­ble. The Mon­e­tary Author­i­ty of Sin­ga­pore has also pushed its own mech­a­nisms of tok­enized pay­ments while dis­cour­ag­ing, but not explic­it­ly for­bid­ding, retail trad­ing.

BeIn­Cryp­to has con­tact­ed Bangko Sen­tral bg Pilip­inas for com­ment but has only received an auto­mat­ed response at publication.

Dis­claimer

In adher­ence to the Trust Project guide­lines, BeIn­Cryp­to is com­mit­ted to unbi­ased, trans­par­ent report­ing. This news arti­cle aims to pro­vide accu­rate, time­ly infor­ma­tion. How­ev­er, read­ers are advised to ver­i­fy facts inde­pen­dent­ly and con­sult with a pro­fes­sion­al before mak­ing any deci­sions based on this con­tent. Please note that our Terms and Con­di­tionsPri­va­cy Pol­i­cy, and Dis­claimers have been updated.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.