Philippines Considers Non-Blockchain CBDC in Near Future
1 min read
Philippines Considers Non-Blockchain CBDC in Near Future
The Governor of the Bangko Sentral ng Pilipinas (BSP), Eli Remolona Jr., has announced plans to introduce a wholesale central bank digital currency (CBDC) in the coming years. Remolona explained that the CBDC will not be built on blockchain technology, as other central banks have had negative experiences with it. Instead, the BSP will utilize its own Payment and Settlement System. The focus will be on the wholesale CBDC, which will be mediated by banks, as the Bank has concerns about potential issues with a retail CBDC. Remolona cited Sweden and China as examples, aiming to replicate their success with a digital complement to cash and rival cryptocurrencies. He expressed confidence that the CBDC will be implemented during his term as governor, potentially within the next two years.
In December 2023, the Philippines Securities and Exchange Commission (SEC) reiterated its ban on Binance, a major cryptocurrency exchange, due to its unregistered activity in the country. Despite warnings, Binance has remained popular in the Philippines, with some users praising its reliability and stability. Responding to criticism, SEC chair Kelvin Lee highlighted the compliance costs that Binance has evaded and advised investors to use one of the 17 registered virtual asset service providers instead.
If Binance wants to regain the trust of the SEC and investors, it needs to address the compliance concerns and work towards registration.
The SEC’s ban on Binance and the continued user support highlight the complex nature of the cryptocurrency market. The debate continues!
So, they’re not even going to use blockchain? How can they expect this to be secure and trustworthy?
Just what we need, another digital currency to confuse and complicate things even further.
Seriously, another digital currency? Can’t the government focus on something more important?
When will the government realize that banning something only pushes people to find alternatives? They’re just driving people away.
It’s great to hear that the BSP is considering a wholesale CBDC. Innovation at its finest!
Despite the ban, it’s interesting to hear that some users still praise Binance for its reliability and stability.