Philippines Could Issue a CBDC in 2026
The head of the Bangko Sentral ng Pilipinas (BSP), Eli Remolona, recently shared their plans to launch a wholesale central bank digital currency (CBDC) within the next few years.
In an interview with Inquirer.net on February 12, Remolona revealed that the central bank has decided not to use blockchain technology for the project, as it has not been successful for other central banks.
Instead, the CBDC will operate on a payment and settlement system owned by the BSP. The BSP’s focus will be on a wholesale CBDC, which means it will be handled by banks as intermediaries.
Remolona explained that the central bank is wary of potential issues with a retail CBDC, such as disintermediation, bank runs during financial crises, and increasing the central bank’s control.
He stated, “The decision is to limit it to wholesale – banks will be the only counterparties and then, retail will ride on them.”
Remolona also referenced Sweden and China’s efforts to develop CBDCs as a digital complement to cash and “competing cryptocurrencies,” and shared his belief that the Philippines can adopt a similar approach.