The Philippines’ central bank, Bangko Sentral ng Pilipinas (BSP), is on track to launch its wholesale central bank digital currency (CBDC) by 2029.
During a recent press briefing, BSP Deputy Governor Mamerto Tangonan announced that Project Agila, the central bank’s wholesale CBDC initiative, is nearing the end of its proof-of-concept phase.
“Governor Remolona is early in his term, and we’re already close to completing the proof of concept. This is an innovative payment instrument, and only the Swiss National Bank has launched a wholesale CBDC,”
Tangonan stated.
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Project Agila aims to explore CBDC technology and evaluate its potential to enhance large-value payment systems. The BSP completed the first phase of the project in July last year and it selected Hyperledger Fabric as the distributed ledger technology for the digital currency.
Bridget Rose Mesina-Romero, Director of the BSP’s Payments Policy and Development Department, highlighted the bank’s methodical approach to this pioneering project and stated that findings from sandbox test experiments will be revealed by year-end.
The BSP is particularly interested in the programmability of CBDC technology, which could improve operational efficiency by reducing intermediaries in payment processes. Tangonan stressed the importance of ensuring a secure operational environment for CBDCs, emphasizing the need for thorough preparation by the BSP and affiliated banks.
CBDCs are digital versions of national currencies, issued as direct liabilities of central banks. Wholesale CBDCs could be used by commercial banks and other financial institutions for interbank payments, securities transactions, and cross-border transfers.
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Meanwhile, in a bid to to promote digital currency adoption in the Philippines, Tether, the world’s largest stablecoin issuer, has introduced a new payment option that allows Filipinos to pay their Social Security System (SSS) contributions using USDT. Tran Hung, CEO of Uquid, described the partnership with Tether as a significant step towards integrating digital currencies into everyday transactions, setting a new standard for convenience and accessibility in digital shopping in the country.
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