Central Bank of the Philippines: Blockchain is not required to create digital currency

In an unprecedented move, the Central Bank of the Philippines (BSP) has revealed its extensive plans to develop and launch its own digital currency within the next couple of years.

While various global central banks have attempted to utilize blockchain technology to introduce their own Central Bank Digital Currencies (CBDCs), they have not been met with the desired success, according to BSP Governor Eli Remolona Jr. Consequently, the BSP has decided against employing blockchain for the implementation of its digital Philippine peso project.

However, the absence of blockchain technology will not compromise the security and efficiency of CBDC trading operations, as vehemently assured by the Central Bank. Acknowledging that the utilization of CBDC in day-to-day retail transactions carries potential risks for the banking system, the BSP has opted to restrict access to CBDC solely to financial institutions rather than making it available to individuals.

Prior to this revelation, the BSP had indicated its intention to test its wholesale digital currency on the Hyperledger Fabric blockchain platform.