PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Philippines to Release Wholesale CBDC in Two Years

By Connie Diaz De Teran
February 15, 2024
in Analysts Coverage, Digital Assets & Crypto
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
CBDCs

In 2020, the Philippines initiated an exploratory study on the viability of central bank digital currencies (CBDCs). Now, the region aims to launch a wholesale CBDC within two years.

However, before its release, there’s more work that needs to be done. According to The Bank for International Settlements (BIS), financial institutions in the Philippines aren’t adequately equipped to handle the risks associated with CBDCs.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. informed the Inquirer that a decision was made to focus on developing a wholesale CBDC instead of a retail one. The launch is scheduled in roughly two years, and notably, distributed ledger and blockchain technology won’t be utilized.

Remolona told the Inquirer: “Other central banks have tried blockchain but it didn’t go well. With ‘wholesale’ CBDC, banks will be the only counterparties and then, retail will ride on them.”

The BSP believes that wholesale CBDCs can enhance the safety and efficiency of both domestic and cross-border transactions. Banks will gain an additional avenue to deposit funds into the BSP, outside of reserves, facilitating real-time interbank payments.

The Case for Wholesale CBDCs

Wholesale CBDCs offer numerous advantages to financial institutions. By eliminating intermediaries, they significantly reduce settlement times and streamline transaction processes. For cross-border payments, securities transactions, and foreign exchange, they have the potential to lower fees. Additionally, they provide Fis with a more secure form of digital currency.

The Philippines isn’t the only country tapping into the benefits of wholesale CBDCs. In fact, Singapore is set to launch its wholesale CBDC early this year. During the Singapore Fintech Festival in November, Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said that Singapore was collaborating with local banks to launch a pilot to use wholesale CBDCs.

This follows Singapore’s initial venture into testing wholesale CBDCs back in 2016. They were mainly operated on distributed ledgers to facilitate real-time cross-border payments and settlements with central banks. Project Ubin marked their inaugural pilot project, focused on experimenting with blockchain and digital ledger technology to settle and clear both securities and payments.  

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BISBlockchainCBDCCross-Border PaymentsDistributed LedgerPhilippinesSingapore

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result