Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has created a committee to look at the feasibility and policy implications of issuing its own digital currency, governor Benjamin E. Diokno said on July 29.
“We have to first look into the findings of the group before making any decisions,” Diokno said, quoted by the Manila Bulletin. “I expect the technical working group to submit their report next month,” he added.
Although he doesn’t believe cryptocurrencies will ever replace banknotes or coins, central bank digital currencies (CBDCs), on the other hand, could very well become the next form of fiat money.
“We do not see [cryptocurrencies] significantly affecting the present demand for physical currency,” he said, noting that blockchain technology “continues to elicit interest around revolutionizing the delivery of financial services.”