⚠️ HRF CBDC ⛓️🪙 alert from HRF for Philippines (09-MAR-2024)
🗝️ℹ️ (Key Information)
CBDC Status: Pilot
CBDC Launch: n/a
CBDC Model: n/a
CBDC Issued: n/a
Inflation Rate: 5.82%
One-Sentence Summary:
The Philippines🇵🇭 is heading towards launching a wholesale Central Bank Digital Currency (CBDC), amidst concerns surrounding financial exclusion and potential misuse for governmental control and corruption.
Paragraph Analysis:
1. ✅ In 2022, the Philippine's central bank (Bangko Sentral ng Pilipinas) launched a pilot phase of a wholesale CBDC, aiming for stability in the payment system.
2. ✅ The CBDC, under Project CBDCPh, is slated for possible issue by 2026, according to Governor Eli Remolona Jr in 2024.
3. ✅ Central Bank Governor Benjamin E. Diokno noted in 2022 that while the project is promising in promoting payment efficiency, it does not address the root causes of financial exclusion.
4. ✅ Project CBDCPh concluded in 2022 with Diokno stating that existing digital payment systems might be superior alternatives.
5. ✅ In 2023, a new CBDC pilot (Project Agila) was initiated, aided by International Monetary Fund and the Bank for International Settlements, with multiple cooperating financial institutions.
6. ✅ Governor Remolona Jr., in 2024, announced that the central bank will not pursue blockchain technology nor a retail CBDC, focusing only on a wholesale CBDC.
7. ✅ According to Deputy Governor Mamerto Tangonan, a wholesale CBDC pilot was expected to be completed by the end of 2024.
8. ✅ The human rights concerns related to CBDC revolve around the misuse of the digital currency to suppress opposition voices and encourage governmental corruption.
9. ✅ The centralization of financial control that a CBDC would bring could be used to undermine the opposition by freezing or seizing their funds easily.
10.✅ Pervasive corruption and lack of robust anti-corruption institutions could lead to abuse of CBDC for political gains and favoritism.
Hashtags:
#CentralBankDigitalCurrency #FinancialInclusion #HumanRights #DigitalCurrency #EconomicStability
Question:
Considering the potential for CBDCs to improve payment efficiency but also risks of governmental misuse and potential financial exclusion, how do you think the Philippines’ move towards a wholesale CBDC will impact the country's economic landscape and human rights scenario over the next decade?
Disclaimer: This is an AI-generated summary of the original text from HRF, forigve fuck-ups plox. If you find it useful, ⚡ the Tracker Bot because the AI and Cloud bits are not free to run.
Source of data: https://cbdctracker.hrf.org/home (npub1zhqcda52mrvcc0vkwegwsp5xtpk6l6x5kqx85f06tu9lw5h6xx0scch0dw)
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