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Bangko Sentral ng Pilipinas (BSP), otherwise known as the Philippines’ central bank is collaborating with the International Monetary Fund (IMF) for the design of a wholesale Central Bank Digital Currency (CBDC).
The IMF, in a report, said that the partnership is to help the BSP in its drive for a wholesale CBDC which has been under construction since May this year.
The project, unlike others embarked upon by other countries, targets wholesale, unlike retail CBDC due to the array of digital payment options already available in the country.
The IMF also disclosed that it will be providing the BSP with technical support by training staff on the use of digital versions of the currency.
It however observed that the BSP will be mandated to implement stiffer anti-money laundering regulations in the process of building the CBDC as a member of the Financial Action Task Force (FATF) list.
“The central bank has also acknowledged the risk of a more significant role by the central bank reducing interbank activity, which might detract from progressing capital market developments in the country,” the IMF said.
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