There is a high possibility that the Philippines will not use blockchain for wholesale CBDC – could it happen by 2026? | CoinDesk JAPAN

• The Philippines is likely to issue a wholesale CBDC within two years, the Inquirer reported.
• There are no plans to issue a retail CBDC due to concerns that there is a high possibility of a bank run.

Central Bank of the Philippines Governor Eli Remolona Jr. told reporters that the Philippines is likely to issue a wholesale central bank digital currency (CBDC) within two years, but many virtual assets He said there are no plans to use underlying blockchain or digital ledger technology. The Inquirer newspaper reported on the 12th.

“Other central banks have also tried blockchain, but it didn't work,” Lemolona said.

CBDCs are digital tokens issued by central banks. Retail CBDCs can be used by the general public, while wholesale CBDCs can only be used by institutions. The Central Bank of the Philippines launched a preliminary study on CBDC in 2020. The Bank for International Settlements (BIS), which coordinates central banks, said in November that institutions were not adequately prepared for the risks posed by CBDCs.

Bangko Sentral ng Pilipinas (BSP) has acknowledged that retail CBDCs could exacerbate bank runs during financial crises, while wholesale CBDCs could improve the efficiency and security of domestic and international payments. There is.

“This decision is only for wholesale, not retail,” Lemolona said.

｜Translation and editing: Rinan Hayashi
｜Image: Alexes Gerard/Unsplash
｜Original text: Philippines Rules Out Blockchain for Wholesale CBDC Seen Likely by 2026: Report