Bangko Sentral ng Pilipinas announced the launch of a wholesale central bank digital currency (CBDC) pilot project for use by financial institutions.
Bangko Sentral ng Pilipinas (BSP) launched a wholesale central bank digital currency (CBDC) project called “CBDC-Ph.” This was reported by the BSP’s official website.
As part of the CBDC research, the pilot project will test the use of the CBDC for large-scale financial transactions on a 24/7 basis across a limited number of financial institutions. One of the project’s main goals is to stabilize the country’s payment system.
According to BSP Executive Director Benjamin Diokno, an intersectoral domestic team has been created to manage the project, including “external advisers from international standard-setting bodies and multilateral institutions.” The team will draw on worldwide experience with CBDC implementation and be ready to share the results with the rest of the world.
Diokno says the pilot project is an important step for both the BSP and the country’s domestic financial sector. Its results will assess the potential and risks of wholesale CBDCs. The BSP chief also stated that the pilot project will be “critical in constructing the BSP’s medium- to long-term roadmap for more advanced wholesale CBDC projects.”
The “CBDC-Ph” project includes developing technology infrastructure, management and organizational requirements, and working through regulatory issues. The development of payment systems and settlement models is also a priority of the pilot project. The Central Bank foresees using the wholesale CBDC for cross-border payments, equity securities payments and intraday liquidity facility (ILF).