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Usha Yadav
Apr 28, 2022
by Usha Yadav

The Philippines' Central Bank will Conduct a Wholesale CBDC Trail

Philippines' Central Bank
The Bangko Sentral ng Pilipinas (BSP) will launch a wholesale central bank digital currency (CBDC) pilot project named CBDCPh as part of its efforts to increase the country's payment system's reliability.

At an annual policymakers ' roundtable, BSP governor Benjamin Dionko said that the central bank's pilot will examine the possibility of deploying CBDCs for large-scale financial transactions "on a 24/7 basis across a restricted number of financial institutions." He also added, “Learnings from the pilot will be critical in constructing the BSP’s medium- to long-term roadmap for more advanced wholesale CBDC projects that shall further strengthen the Philippine payment system,”

 

According to the BSP, By the end of 2020, digital payment methods will account for around 20.1 percent of monthly retail transactions in the Philippines, up from 10% in 2018.

Because of the advancement and use of existing digital payment systems, the central bank warned of "little perceived additional value" of retail CBDCs in the Philippines.

Wholesale CBDCs, unlike retail CBDCs, are only available through banks and other financial organisations. Cross-border money transfers, equities securities payments, and intraday liquidity facilities can all benefit from a wholesale CBDC.

 M-CBDC Bridge Project

The M-CBDC Bridge Project and Project Dunbar, both based in Singapore, are currently two Asian cross-border wholesale CBDC efforts. There is less incentive for the Philippines to join Singapore's Project Dunbar, including Australia, South Africa, and Malaysia because the Philippines is already working on a bilateral cross-border payments system with Singapore. It may also be more inclined to participate in the M-CBDC Bridge Project, where the UAE is one of the participants, accounting for 4.3 per cent of inbound Philippines remittances.

 

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The Philippines' Central Bank will Conduct a Wholesale CBDC Trail
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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