Catenaa, Tuesday, December 10, 2024 – The Bangko Sentral ng Pilipinas (BSP) has concluded its proof-of-concept trial for Project Agila, a wholesale central bank digital currency (CBDC) initiative aimed at enhancing large-value payments. The pilot program, which assessed technical and functional aspects, marks a critical step toward exploring CBDCs for the Philippine financial system.
Wholesale CBDCs can improve liquidity management, mitigate settlement risks, and support financial stability, BSP said Thursday.
“Insights from this project will shape the BSP’s CBDC roadmap and strengthen our national payment systems,” it added.
CBDCs represent digital currency issued directly by central banks and are denominated in the national currency. Wholesale CBDCs primarily serve financial institutions for interbank transfers, securities transactions, and cross-border payments.
The BSP’s pilot program aligns with its year-end target to assess CBDCs’ potential to modernize and secure large-value payment systems. Deputy Governor Mamerto Tangonan confirmed that roadmapping efforts are slated for January, signaling the BSP’s next steps, which could include further testing or formal implementation.
While the BSP has identified wholesale CBDCs’ benefits, it remains cautious about issuing retail CBDCs due to the limited advantages observed in consumer-level applications. “Wholesale CBDCs offer clear benefits. For retail, we’ve yet to see convincing advantages,” Tangonan explained.
