coinspress.com
The central bank of the Philippines is set to roll out its own digital currency within the next two years, aiming to counter the growing use of cryptocurrencies in the nation.
Instead of opting for blockchain technology, the bank plans to focus on a wholesale model for its digital currency.
Governor Eli Remolona Jr. announced the initiative on February 12, stressing the need for a stable and regulated digital currency to improve both domestic and international payments.
The move comes amid concerns about the rise of cryptocurrencies and their potential impact on the country’s financial stability. By introducing its own digital currency, the central bank hopes to provide a more secure and efficient alternative to traditional payment systems.
While the development of CBDC has been met with mixed reactions globally, with some praising their potential to enhance payment systems and reduce fraud, others have raised concerns about privacy and access.
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Despite these challenges, the Philippines is moving forward with its CBDC project, drawing insights from other countries’ experiences, such as Sweden’s efforts in this area.
Governor Remolona emphasized the importance of learning from these experiences and leveraging existing infrastructure, such as the Philippine Payment and Settlement System, to ensure the security and effectiveness of the country’s digital currency.
As the Philippines joins the global conversation about the future of digital currencies, its approach reflects a careful balance between innovation and risk management in the financial sector.