The Philippine Treasury Department has set its sights on a groundbreaking partnership with the Central Bank of the Philippines (BSP) to leverage digital currencies for the sale of government securities, delving into the prospects offered by blockchain technology.
In a historic move, the Philippines recently secured 15 billion pesos ($271 million) via its inaugural tokenized government bond issuance, executed using Distributed Ledger Technology Registry (DLT), popularly known as blockchain.
“We are actively assessing the potential of DLT. Our intent is to collaborate with the Central Bank of the Philippines on the Central Bank Digital Currency (CBDC) initiative,” emphasized the deputy director general of the Philippine Treasury Department on Monday (Nov. 20). “We envision exciting opportunities to merge our DLT portfolio with the central bank’s CBDCs.”
The Central Bank of the Philippines has been engaged in trials pertaining to CBDCs for high-value financial transactions. This exploration involves a comprehensive evaluation of the advantages, associated risks, and policy implications intrinsic to this groundbreaking technology.
This foray into utilizing blockchain for government bond sales underscores the Philippines’ proactive stance in exploring innovative financial technologies. The move not only signals a potential transformation in the nation’s financial landscape but also represents a step toward embracing digital currencies and the underlying blockchain technology within the government’s financial operations.