The Philippines expects to put in place within the next two years a central bank digital currency (CBDC), taking its cue from peer regulators that have developed such digital tokens to compete with volatile cryptocurrencies as an alternative payment system and storer of value.

In a recent chat with business editors, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the decision was to develop wholesale rather than retail CBDC for the local market. Blockchain or distributed ledger technology won’t be used, he added.

“Other central banks have tried blockchain but it didn’t go well,” he explained.

With “wholesale” CBDC, Remolona explained, “banks will be the only counterparties and then, retail will ride on them.

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