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Central-bank governor for the Philippines believes more research is needed before The country can start developing a CBDC 

Central-bank governor for the Philippines believes more research is needed before The country can start developing a CBDC 

Quick take

1 minute read

  • Benjamin Diokno has recently announced this week that the financial institution has come to the conclusion in a recent study that more work is needed to make a central-bank digital currency in the nation of reality. 
  • Over the summer, it was confirmed that the Philippine bank was doing a study and investigating the reality and potential policy implications if the country issued its own central-bank digital currency.

Benjamin Diokno, the governor for the central bank in the Philippines has recently announced this week that the financial institution has come to the conclusion in a recent study that more work is needed to make a central-bank digital currency in the nation of reality. 

Over the summer, it was confirmed that the Philippine bank was doing a study and investigating the reality and potential policy implications if the country issued its own central-bank digital currency.

In a recent press briefing, the governor turned down the possibility that a CBDC could be launched any time in the near future. Going off the study, it suggested that further research is needed when it comes to looking at capacity building and the creation of networks between other central banks and financial institutions.

Whereas the Study looked into the basics of focusing along to locations for monetary policy and legal frameworks, there is still a lot of ground to cover.

Research into this asset class in the Philippines has come off the back of the roadmap of the central bank's digital payments transformation which looks to switch more than half of retail payments into digital form within three years. This would help ensure that 70% of citizens are banked by the end of 2023.

As the Philippines looks into CBDC even more, countries elsewhere are looking at the asset class in a more serious manner. China is getting ready to release its own digital yuan later this year, according to reports, and the reaction from the community is mixed to say the least. 

Whereas it is positive to see a big country like China get involved with cryptocurrency on such a significant level, implications of what a digital yuan would mean are unknown.

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