The Bangko Sentral ng Pilipinas (BSP) has announced its intention to launch a wholesale central bank digital currency (CBDC) by 2029.
The Bangko Sentral ng Pilipinas (BSP) has announced its intention to launch a wholesale central bank digital currency (CBDC) by 2029. This ambitious initiative aligns with the tenure of BSP Governor Eli Remolona Jr., who previously stated that the central bank aims to introduce a CBDC within his six-year term, which ends in 2029.
During a recent press briefing, BSP Deputy Governor Mamerto Tangonan provided insights into Project Agila, the bank’s wholesale CBDC initiative. He stated:
“We are nearing the completion of the proof of concept. This innovative payment instrument is a pioneering effort, as no other central bank globally, apart from the Swiss National Bank, has launched a wholesale CBDC.”
Tangonan highlighted that the BSP is in the early stages of the governor’s term, and the project is already close to finalizing its proof of concept. He explained, “If the proof of concept successfully enhances the knowledge and preparedness of both the BSP and the banks, we will then decide on the launch.”
Tangonan emphasized the novelty and importance of the project, saying, “This is an entirely new venture, and we must ensure that we can offer, maintain, and operate it securely. Additionally, the banks need to be ready with business use cases for this BSP-issued digital currency.”
Project Agila, initiated in December 2022 and initially named Project CBDCPh, is a two-phase project designed to explore CBDC technology and evaluate its potential to enhance large-value payment systems. In July 2023, the BSP selected Hyperledger Fabric as its distributed ledger technology for the first phase. The project aims to acquaint the BSP and participating financial institutions with CBDC technology solutions to improve the country’s large-value payment system.
