Philippines central bank to pilot test digital currency

The Philippines will soon conduct the pilot testing of its central bank digital currency (CBDC) in Q4 of this year, according to the Bangko Sentral ng Pilipinas (BSP). Central bank governor Benjamin Diokno said the BSP continues to invite entities to participate in the pilot testing of Project CBDCPh as several banks have been onboard. Project CBDCPh is led by an intersectoral project management team to ensure coverage of critical operational areas. CBDCs are designed to be equivalent in value to a nation’s paper currency and subject to the same government-backed guarantees. The BSP said it is exploring the potential use of wholesale CBDCs in areas where these can yield the greatest value-adding benefits to the payment system.