The governor of the Philippine central bank, Benjamin Diokno, has revealed that the institution’s “exploratory” study of CBDC suggesting that far more work is required to form a digital peso a reality.
Earlier within the summer, Bangko Sentral ng Pilipinas had confirmed it had been investigating the feasibility and potential policy implications of issuing its own CBDC, or digital counterpart to the physical peso.
Within an official press release, Diokno reportedly rejected the likelihood that a CBDC might be issued any time within the near future. The study thus far has suggested that ongoing research is required to seem into capacity-building and therefore the creating of networks between other central banks and financial institutions.
So far, the bank’s study has covered basic issues surrounding CBDCs, that specialize in implications for monetary policy, legal frameworks, payments as well as settlement systems, financial inclusion, and regulatory oversight.
The governor has said that CBDC research at the BSP may benefit from a study of the business models of private-sector virtual assets within the Philippines, also like the use of industry sandboxes. The central bank plans to seem into the way to improve the country’s existing payment system and to draw upon other central banks’ CBDC research worldwide.
CBDC research within the Philippines has emerged against the backdrop of the central bank’s Digital Payments Transformation Roadmap, that aims to modify over 50% of retail payments into digital form by 2023, and to make sure that 70% of citizens have a bank account by the end of the time period.
Ongoing CBDC research could require technical input from the Global monetary fund and Bank of Global Settlements, within the BSP’s view.
The central bank remains committed to the view that CBDCs are superior to non-public virtual assets, and has indicated that its digital innovations will still evolve within the prevailing structure of fiat assets.