The bank has not issued an official report on whether or not to send its cryptocurrency to the Philippine market
Recently, official spokespersons of the Central Bank of the Philippines (BSP), announced that they are still not sure whether to bet everything on the launch of their own cryptocurrency, which would be supported by the institution.
According to the comments, they said they still in long debates where the idea of being updated with technology has clashed with the idea of fulfilling other responsibilities that the financial institution handles.
About this insecurity that the institution is undergoing, Benjamin Diokno, President of the BSP, commented that the presiding institution is not the only one in the world that is in the same situation.
During a meeting of the Bank for International Settlements, which took place in Switzerland last month, most representatives of the Central Banks of the world agreed with the thought of not being ready for the adoption of these technologies. At the same time some of them expressed feeling worried about the launch of Libra, the cryptocurrency of the social network Facebook.
Diokno added that after witnessing the great division of criteria within the global financial system, the idea of launching the digital currency will be under discussion in its next decision-making process.
About the dangers that the institution could face when adopting the crypto-technology, Dionko mentioned that there are strong risks related to cryptocurrencies like Ethereum and Bitcoin. However, he thinks that in the case of a cryptocurrency issued by a central bank there will not be these kinds of risks. In spite of this, he explained that there are other ways in which the bank can face great risks if it manages to issue digital currencies.
“We have to be open to innovation, except that we also have a responsibility with consumer. Let’s give it another three or five years”, concluded Diokno.
In addition, it was mentioned that the volatility handled by cryptocurrencies is too risky for consumers since the value of these digital currencies is constantly changing and this could negatively affect the institution’s intention of investing.
Also, according to data recorded by the BSP’s Technology Risk and Innovation Supervision Department, transactions made with digital assets in the country have doubled since last year, arriving to handle an approximate of more than 390.37 million dollars.
It is for this reason that the Central Bank of the Philippines authorized and licensed more than 11 exchange houses that handled digital assets. Among the most used by Filipinos are: Bexpress Inc., ABA Global Phils. Inc., Virtual Currency Philippines Inc., and others.
The final decision of the bank about whether or not to launch the cryptocurrency, has not yet been officially announced. For the moment, the Filipinos say they will continue to use digital currencies to make their transactions. Bitcoin and Ethereum are among the currencies that they use the most to carry out some of their payments.
BSP personnel urged caution regarding the use of cryptocurrencies this week and promised to continue to address the risks those assets represent.
By María Rodríguez