The Governor of the Central Bank of the Philippines said that the technology underlying digital assets can improve the provision of financial services, and the regulator is exploring the possibility of issuing a state-owned cryptocurrency.
According to Bloomberg, the Governor of the Central Bank of the Philippines, Benjamin Diokno, said that digital assets expand the reach and reduce the cost of financial services. They can also help the Central Bank eventually reduce the use of paper money, he said.
According to Diokno, the Central Bank of the Philippines ‘ digital currency study includes a “comprehensive discussion” of price stability and legal hurdles. The regulator also plans to assess the impact of the state cryptocurrency on the existing domestic market of digital assets and the financial system as a whole.
Last year, the Philippines adopted open and flexible regulation of digital assets, paving the way for greater use and trading of cryptocurrencies. According to the Central Bank, there are currently sixteen licensed cryptocurrency exchanges operating in the country, compared to ten last spring.
Although there is no official agreement with other governments to cooperate in the development of state-owned cryptocurrencies, Diokno said that “there is an ongoing process of knowledge sharing and close interaction.”
Recall that in the summer, the securities and exchange Commission of the Philippines (SEC) issued a warning about the danger of unauthorized cryptocurrency investments and trading.