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Benjamin Diokno |, the governor of the Reserve Bank of the Philippines, recently noted that the underlying technology behind digital tokens can streamline or improve existing financial services. The nation’s central bank is studying the feasibility of issuing its own virtual currency.
Diokno believes that digital tokens can help reduce the costs associated with providing certain financial services. They could also help the country’s reserve bank reduce the use of fiat money, the governor said.
As reported by Bloomberg Quint, the reserve bank in the Philippines is looking at the potential benefits that central bank digital currencies could offer. The bank has reportedly had “extensive discussions” on regulatory requirements to issue a state-backed virtual currency.
EU member states have also held discussions on issuing digital currencies. However, China seems to have taken the lead when it comes to developing a CBDC and also promoting the adoption of blockchain or distributed ledger technology (DLT). Banks in developing countries like the Philippines are also beginning to realize the importance of conducting research on the process behind creating their own virtual currencies.
Diokno added that the reserve bank in the Philippines “will continue the process of knowledge exchange and close communication” with other countries. However, there is no official agreement with other banks on how to conduct CBDC testing.
The Philippines has reportedly adopted an open and flexible regulatory framework for digital assets, which has made it quite easy for locals to trade and use cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Currently, there are 16 licensed virtual currency trading platforms operating in the Philippines, according to the country’s reserve bank.
The Bank of Thailand is also testing its own virtual currency with local businesses and plans to allow larger service providers to start experimenting with the technology, according to Governor Veerathai Santiprabhob. Thailand’s central bank has noted that it has tested its digital currency system with local lending platforms and has also conducted several cross-border transactions with the Hong Kong Monetary Authority.
Cypherium, the creator of cross-chain interoperability solutions for central bank digital currencies, plans to raise funds through a new token sale.
An official at Ukraine’s reserve bank recently stated that CBDCs need the private sector to succeed. As reported last month, China’s virtual yuan or digital currency electronic payment system (DCEP) was being introduced in Hong Kong’s Greater Bay Area.
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