As various countries have stepped into the digital era of currency and have started researching on the feasibility of central bank digital currency (CBDC). The central bank of the Philippines is the latest one to show its interest launching central bank digital currency.
Central Bank is willing to Study CBDC
In a virtual conference dedicated to the launch of banknotes (New Generation Currency), the governor of the central bank says that a committee is set up that will check the practicality of digital currency. Benjamin Diokno said:
“We just recently formed a technical working group to study the feasibility and policy implications of issuing a central bank digital currency or CBCD. We have to first look into the findings of the group before making any decisions in this regard. I expect the EWG to submit their report next month.”
However, the governor has clarified that underlying technology is more important and digital currency will not disturb the physical currency.
“Blockchain continues to elicit interest around revolutionizing the delivery of financial services by providing an efficient, secure and robust means of payment,” he added.
Pandemic Speeds up the Process
The effort to study and research CBDC is because of the current crisis that happened due to the Coronavirus pandemic. And the central bank is finding new ways to overcome the situation by introducing a secure and more efficient monetary system. This is not for the Philippines, but most of the countries are in this race.
In the Philippines, the fintech industry has gained recognition on a wider level in recent months. At the start of the year, it is reported that digital payments providers- InstaPay and Philippines PESONet- have seen 70% growth in their volume.
With the onset of Coronavirus pandemic, the idea to launch digital currency has become more popular than ever and various countries have started to think about CBDC. Before the Philippines, Singapore is the latest country that believes the central bank should issue a digital currency.
China is close to issuing digital yuan and the project is currently in the testing phase.