The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank is planning on introducing its own digital currency according to the news reported by Bloomberg on Wednesday.
A committee is created for studying digital currencies
The Philippines Central bank has now also started thinking about releasing its digital currency and for this purpose the central bank has made a committee as well. The main task of the committee is to look at the digital currency’s policy implications and feasibility. After conducting a study on digital currency, the committee will present its findings to the central bank. The central bank will then review these findings and will make a final decision regarding the issuance of its digital currency.
According to Benjamin Diokno the Governor of the Bangko Sentral ng Pilipinas, the central bank will not make any decision until the committee provides its finding to the bank. The central bank’s governor said:
We have to first look at the findings of the group before making a decision.
The study’s initial results or findings are expected to come out in the next month according to the Bloomberg report.
Various top central banks in the world are working on issuing their own digital currencies such as the Bank of Japan, the Bank of England, etc. China’s central bank digital currency “digital Yuan” is also undergoing its testing phase.
However, Diokno believes that despite the rising digital currencies’ prevalence, they cannot affect the fiat money’s demand at the moment. He said:
Cryptocurrency for us has always been beyond the asset itself but more on the blockchain technology that underpins it.
Yesterday, the Philippine Bureau of the Treasury (BTr) released an app called Bonds.PH which is based on blockchain technology and makes the bond investment procedure easy. The Philippines’ central bank admired this initiative taken by the Philippine Bureau.