The Bangko Sentral ng Pilipinas (BSP) said it is looking deeper into the viability of a central bank digital currency (CBDC) in the Philippines.
During a virtual briefing late last week, BSP Governor Benjamin Diokno said the Bangko Sentral has already documented the developments and initiatives of other central banks on CBDC in a report released last month.
A CBDC is a digital form of central bank money that is denominated in a national unit of account and functions as both a medium of exchange and a store of value.
The recently released BSP study has recommended continuing research, capacity building and the establishment of networks with central banks and institutions that are also researching on the currency.
While the BSP is not keen on issuing its own digital currency anytime soon, Diokno said it continues to monitor developments in private digital currencies and CBDCs in both the domestic and global markets.
“We are currently preparing to undertake a study of its existing payments and settlement system vis-a-vis its digitalization agenda to assess any gaps that may be addressed by a CBDC, and its value proposition against existing payment system,” he stressed.