The Central Bank of the Philippines, Bangko Sentral ng Pilipinas or BSP, views digital tokens as a means to reduce the use of fiat funds and improve the provision of financial services in the country. even if it continues to study its own digital currency.

Speak with Bloomberg, Central bank governor Benjamin Diokno said digital tokens “expand the reach and lower the cost of financial services”. as well as reduce the use of fiat money.

The Central Bank of the Philippines has expressed an interest in digital tokens
The Central Bank of the Philippines has expressed an interest in digital tokens

Diokno said that Digital tokens improve the way the central bank provides financial services to citizens.

The Philippines is one of the countries that are studying the introduction of their own digital currency. The BSP said its study will examine the feasibility and potential policy implications of a central bank digital currency (CBDC). The country has already launched a platform powered by blockchain for the distribution of government bonds.

The CBDCs previously reported by Cointelegraph allow central banks to reduce their reliance on clearinghouses and cut costs, and even allow them to conduct monetary policy. CBDCs can also be distributed digitally to citizens.