Benjamin Diocno, Governor of the Philippine Central Bank, announced that a „preliminary“ study carried out by the central bank’s digital currency research institution suggests that much more work needs to be done to make the digital peso a reality.
In the summer, Bangko Sentral ng Pilipinas confirmed that it is studying the feasibility and potential political implications of issuing its own CBDC or a digital equivalent of a physical peso.
At a press briefing, Diocno reportedly rejected the possibility of releasing the CBDC at any time in the near future. So far, the study has shown that ongoing research is needed in order to study the capacity building and networking between other central banks and financial institutions.
So far, the bank’s research has covered the main issues related to the CBDC, focusing on the implications for monetary policy, legal framework, payment and settlement systems, financial availability and regulatory oversight.
The Governor said the CBDC study at BSP could benefit from studying the business models of private sector digital currencies in the Philippines, as well as the use of industry sandboxes. The central bank plans to study how to improve the country’s existing payment system and use CBDC research from other central banks around the world.
The CBDC study in the Philippines was born out of the central bank’s Digital Payment Transformation Roadmap, which aims to digitize more than 50% of retail payments by 2023 and ensure that 70% of citizens have bank accounts by the end of the year.
According to BSP, CBDC’s ongoing research may require technical support from the International Monetary Fund and the Bank for International Settlements.
The Central Bank remains of the opinion that the CBDC is superior to private digital currencies and has indicated that its digital innovations will continue to develop within the existing structure of fiat currencies.