Philippines to Launch Wholesale CBDC without Blockchain

Philippines' CBDC Plans

The Philippines central bank is on track to release a wholesale central bank digital currency (CBDC) within the next two years. Governor Eli Remolona Jr reported that the currency would not utilize blockchain technology due to lackluster results from other central banks' attempts.

CBDC Exploration and Risks

Initiated in 2020, the exploratory study into wholesale CBDCs conducted by the Bangko Sentral ng Pilipinas (BSP) reflects a cautious approach to digital currency issuance. The Bank for International Settlements recently highlighted potential risks that merit careful preparation before the launch of a CBDC.

Wholesale Over Retail

While the retail CBDC could create tension during periods of financial instability, BSP suggests that a wholesale CBDC has the potential to streamline and secure payment systems domestically and internationally. This influenced their decision to limit the implementation to wholesale applications only.