Philippines Believes Digital Peso Will Accelerate Financial System Modernization
In 2020, the Central Bank of the Philippines announced that it is preparing to launch a national digital currency, or CBDC, in an effort to reduce the use of cash in the local market.
This initiative, which was confirmed by Deputy Head of the Central Bank Mamerto Tangonan, is expected to be completed by 2024 and is part of the Agila project.
The ultimate goal of this project is to digitalize the payment infrastructure and make the CBDC an integral component of the new financial system.
By implementing a digital currency, the Central Bank hopes to lower transaction costs and increase the efficiency of the manufacturing sector.
Currently, research is being conducted on the feasibility of a digital currency pegged to the peso, and a final decision will be made based on the results. In essence, this will involve the production of virtual coins instead of physical banknotes.
