Governor of Philippines Central Bank Plans Wholesale CBDC
The Governor of the Philippines Central Bank (BSP), Eli Remolona, has announced that the bank intends to introduce a wholesale central bank digital currency (CBDC) in the near future. The BSP is optimistic about the growth of digital payment technologies and aims to improve financial services for unbanked Filipinos and micro, small, and medium enterprises (MSMEs).
Wholesale Approach to CBDC Development
Remolona stated in an interview that the BSP’s strategy for developing the CBDC will not involve blockchain technology. Instead, it will operate on a payment and settlement system owned by the central bank. The focus will be on a wholesale CBDC, with mediation by banks. Retail CBDCs raise concerns about disintermediation, bank runs, and the expansion of the central bank’s influence.
Replicating Success
Remolona believes that the Philippines can replicate the success of countries like Sweden and China in developing CBDCs as digital alternatives to cash and cryptocurrencies. He assured that the CBDC would be implemented within his term as governor, potentially within the next two years.
Digital Payments Transformation in the Philippines
The BSP’s Digital Payments Transformation Roadmap (DPTR) has contributed to significant progress in digital payments. From just a one percent share in 2013, digital retail payments transactions reached a 42.1 percent share by 2022. The BSP aims to achieve a 50-percent target by the end of 2023.
Promoting Digital Payments
The BSP introduced Paleng-QR Ph Plus, a program promoting digital payments using QR codes. This initiative aligns with the BSP’s goal of transitioning half of the country’s retail payments volume into digital form and integrating 70% of Filipino adults into the formal financial system. Other digital payment initiatives, such as Bills Pay Ph, have also been launched.
The Future of Digital Payments in the Philippines
The BSP is mapping out the next phase of the country’s digital journey under the 2024–2026 Digital Payments Transformation Roadmap. Additionally, the Philippines Bureau of the Treasury plans to offer tokenized Treasury bonds for the first time.
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