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Philippine Central Bank Believes Stablecoins Could ‘Revolutionize’ Payment System Cryptocurrency News

Philippine Central Bank Believes Stablecoins Could ‘Revolutionize’ Payment System Cryptocurrency News, Crypto Trading News
Mhel Plabasan – an executive at Bangko Sentral ng Pilipinas (the Central Bank of the Philippines) said the institution is very supportive of stablecoins as they can support the monetary system and ensure “affordable and faster” cross-border transactions.

The organization also plans to launch a pilot version of their CBDC by the end of 2022.

In this regard, it is worth noting that the central banks of Israel, Norway and Sweden have been working with the Bank for International Settlements (BIS) to explore how CBDCs could participate in transnational payments.

Stablecoins could support the financial well-being of the Philippines

During a panel discussion at Forkast’s “Crypto Rising: CBDCs & Stablecoins: The Asia Perspective,” Mhel Plabasan — Director at the Central Bank of the Philippines — said said Stablecoins could benefit the country’s payments network:

He outlined the significant number of Filipinos working abroad and argued that stablecoins could allow them to send funds to their families in a cost-effective way:

“We saw that it really had the potential to revolutionize both domestic and cross-border payments more affordable, faster, and even with the ability to use stablecoins to make cross-border remittances efficient.”

It is estimated that almost 12 million people of Filipino descent live outside their homes. Their number is the highest in the US – over four million.

Although Plabasan advocated the adoption of stablecoins, he argued that regulators should closely monitor emerging technologies:

“That’s why it’s important to us to continuously involve the private sector [and] We are learning together. We are part of the journey to improve digital payments with stablecoins,” he added.

The executive further announced that the financial institution will soon launch its central bank digital currency (CBDC) in a pilot phase. By the end of the year, the CBDCPh project, as the authorities called it, is expected to see the light of day.

The BIS and central banks

Speaking of CBDCs, it’s worth mentioning the joint venture between the Bank for International Settlements and the central banks of Israel, Norway and Sweden known as “Project Icebreaker”.

The Entities United forces to study how such financial instruments could handle international retail and remittance payments. The team will examine whether CBDCs allow for cheaper and faster transactions than traditional methods.

It runs until the end of 2022, a final report with the results will follow in the first quarter of next year. Beju Shah – Head of BIS Innovation Hub Nordic Center commented on the matter as follows:

“This unique experiment will delve deeper into technology, architecture and design decisions and considerations and examine related policy issues. These insights will be invaluable for central banks considering adopting CBDCs for cross-border payments.”

Mithra Sundberg – an executive at Sweden’s central bank – said Sweden joined the project to double down on its e-krona effort. The country’s authorities are among the most active in the CBDC scene. Last year the Riksbank said By the end of 2026, it should be ready with its digital currency.

Source: Crypto News Deutsch

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