The Central Bank of the Philippines (BSP) said it will focus on exploring digital currencies for fast and low-cost transactions between financial institutions.
BSP Governor Felipe Medalla said the central bank is interested in launching a state-owned steve coin for interbank payments and international transfers. For this purpose, the central bank is working with other banks in other countries, especially Indonesia, Thailand, and Singapore. Several major Philippine financial institutions are involved in testing wholesale CBDCs.
However, the central bank has no immediate plans to launch digital Philippine pesos for retail users. Regulators expect that in the long run, anyone living in the Association of Southeast Asian Nations country will be able to use state stack coins for payments over regular phones. Regulators’ reluctance to investigate retail CBDCs stems from concerns that demand will disappear in the Philippines. This is because the payments industry is already saturated with multiple fintech platforms offering a variety of payment options.
The BSP has announced that the number of digital payments will increase by 30% in 2021 due to pandemic restrictions. Regulators hope to digitize about 50% of all transactions and increase the number of bank account holders to 70% by 2023. To accelerate this initiative, the Bank of the Philippines will launch InstaPay debit PUll and Request to Pay payment services.
A few months ago, the Philippine Central Bank said that stablecoin could also improve payment and settlement efficiency, but for this to happen, appropriate regulations need to be developed. All results not available for download.