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.