BSP Plans to Use Wholesale CBDC for Government Bond Settlement
The Bangko Sentral ng Pilipinas (BSP) is exploring the use of a wholesale central bank digital currency (CBDC) to settle government securities.
The central bank is currently developing a strategic roadmap and a second proof of concept to support this initiative.
BSP Deputy Governor Mamerto Tangonan confirmed that the next phase will align with the Bureau of the Treasury’s recent advancements.
He noted that the treasury’s pilot “lacked a settlement instrument, so we will be providing that with CBDC”.
This development follows the conclusion of Project Agila in 2024, the BSP’s initial pilot testing for wholesale CBDC.
The project involved various financial institutions and covered functional, performance, and security testing to evaluate technology solutions for large-value payments.
BSP Governor Eli Remolona Jr. stated that wholesale CBDCs will “enhance liquidity management, reduce settlement risks, and support financial stability.”
The central bank will use the insights from Project Agila to guide its broader technology roadmap and improve the national payment system.
While the BSP sees clear potential in wholesale applications, such as cross-border trade finance and securities settlement, plans for a retail version remain on hold.
Tangonan explained that they have not yet seen a “convincing benefit for retail” compared to the advantages identified in the wholesale sector.
He added that a retail CBDC would only be considered if significant gaps appeared in the current digital payment system.
Featured image: Edited by Fintech News Philippines based on an image by Lanfira via Freepik.
The post BSP Plans to Use Wholesale CBDC for Government Bond Settlement appeared first on Fintech News Philippines.
You May Also Like
VanEck Targets Stablecoins & Next-Gen ICOs
Crypto ETF Update: This Altcoin Could 1000x by 2026
