The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP) recognises digital tokens as a means to reduce the use of fiat money and improve the delivery of financial services in the country, even as the country is still studying its own digital currency.
It has been reported by Bloomberg that Benjamin Diokno, the governor of the bank, said digital tokens “expand reach and lessen costs of financial services” as well as reduce the use of fiat money.
However, Diokno said that digital tokens improve how the central bank provides financial services to citizens.
Philippine central bank sees digital tokens improving financial services https://t.co/qsQ71XbrSd — Cointelegraph (@Cointelegraph) September 19, 2020
According to the report, the Philippines is one of the country’s studying the launch of its own digital currency, as the BSP has said that its study will look at the feasibility of and potential policy implications of a central bank digital currency (CBDC).
The country had already launched a blockchain-powered platform to distribute government-issued bonds.
As previously reported, CBDCs allow central banks to decrease their reliance on clearinghouses and cut costs and will enable them to implement monetary policies.
Thus, CBDCs can also be distributed to citizens digitally.