24/7 Cryptocurrency News

CBDC Initiative to Enhance Philippine Payment Systems

Philippines set to launch digital currency via banks, bypassing blockchain for a secure, bank-mediated CBDC rollout within two years.
CBDC Initiative to Enhance Philippine Payment Systems

Highlights

  • Philippines' CBDC to bypass blockchain, ensuring seamless bank integration.
  • BSP to pilot wholesale digital currency, setting a 2-year launch goal.
  • Philippines explores tokenized bonds, pioneering digital finance in Asia.

The Philippines is on track to launch its digital version of the Central Bank currency (CBDC) within the next two years. This program, headed by the Bangko Sentral ng Pilipinas (BSP), intends to roll out the CBDC for wholesale through banks, which is a switch from the current approach to digital currency.

Advertisement

Wholesale CBDC Development Strategy

BSP Governor Eli Remolona said the CBDC project would not use blockchain, a decision arrived at in response to difficulties that other central banks have had in their blockchain experiments. In contrast to it, the digital money will work on a private payment and settlement system, which the central bank will control. 

The purpose of this technique is to ensure that problems that may arise with the use of retail CBDCs, such as disintermediation and risk accumulation during crises, among others, are minimized.

Advertisement

Focus on Bank-Mediated Transactions

In the BSP’s approach, banks’ role in the CBDC infrastructure is highlighted as the primary channel through which consumers can obtain CBDC. Remolona indicated that the CBDC would only be accessible to banks and would enable the processing of payments for retail clientele. This model seeks to utilize the already available infrastructure in the banking sector to enable an effective and seamless integration of the CBDC into the Philippine financial system.

Remolona cited the CBDC projects in Sweden and China as fully functional, thus serving as models for digital currencies designed to complement physical cash and provide an alternative to cryptocurrencies. The BSP thinks applying the same model can improve the efficiency and security of financial transactions in the Philippines. Committed to implementing CBDC on his watch, Remolona foresees considerable progress by the end of the next two years. 

Regulatory Aspects and Crypto Market’s Opinion

Similarly, the CBDC initiative is being implemented parallel to the regulation of the Philippines Securities and Exchange Commission (SEC) of the cryptocurrency industry. Recently, the SEC has strengthened its ban on Binance for continuing to operate without proper registration. 

This step clearly shows the government’s conservative approach to foreign crypto exchanges and brings to light the need for adherence to compliance and customer protection laws under the changing digital finance landscape.

The Philippines is also investigating tokenized financial instruments, including the recent decision to issue tokenized treasury bonds as an extension to the CBDC project. This venture is a trailblazing case in the region that utilizes digital technologies in the context of traditional financial products that may serve as an example for innovative opportunities in the future.

Read Also: FTX to Sell Digital Custody Unit for $500K, Down from $10M Buy

Advertisement

Share
Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025
  • 24/7 Cryptocurrency News

Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility

Pi Network has now added two new features to its Testnet. These are a decentralized…

October 1, 2025
  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025