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8 months ago
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ARTICLE AD BOX
The Bangko Sentral ng Pilipinas (BSP) is moving forward with a pilot project for a wholesale central bank digital currency (wCBDC), named Project Agila, aiming for completion by the end of the year. Deputy Governor Mamerto Tangonan highlighted the initiative as a “learning exercise” during a press conference on March 6.
Project Agila involves six domestic banks – BDO Unibank, China Banking Corp., Land Bank of the Philippines, Rizal Commercial Banking Corporation, Union Bank of the Philippines, and Maya Philippines – in collaboration with the BSP. The project’s primary focus is using the wCBDC for interbank fund transfers, with an additional interest in exploring its application in securities settlement.
Background and developments
The exploration of a CBDC in the Philippines dates back to 2020 when the BSP first expressed interest in digital currency issuance. The initial positive assessment led to the announcement of pilot tests starting in 2022, known then as Project CBDCPh. The decision to pilot a wCBDC, as opposed to a retail CBDC, stems from concerns around bank disintermediation and related issues. BSP Governor Eli Remolona clarified that the CBDC would not utilize blockchain technology.
Additionally, the Philippines participated in a 2023 pilot study alongside the Digital Dollar Project, Western Union, and BDO Unibank to investigate the use of a retail CBDC for remittances. The study identified potential benefits such as lower costs and increased transparency, though it also noted the need for improvements in transaction speed, especially for remittances arriving outside of working hours.
Project Agila marks a significant step in the BSP’s efforts to explore the capabilities and implications of implementing a wCBDC in the Philippine banking system, aiming to enhance efficiency and inclusivity in financial services.
The post Wholesale digital currency pilot underway in the Philippines with Project Agila first appeared on Coinfea.
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