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Bangko Sentral to pilot central bank digital currency for wholesale transactions

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<p>MANILA - The Bangko Sentral ng Pilipinas on Wednesday said it would &quot;pursue&quot; a pilot project on the use of central bank digital currency (CBDC) for wholesale transactions.</p><p>The project called the CDBCPh is seen to promote stability of the country&#x27;s payment system, the central bank said in a statement. </p><p>During the test run, CBDCs will be used for large-value financial transactions on a 24/7 basis across a limited number of financial institutions, the BSP said. </p><p>The pilot covers policy and regulatory considerations, technological infrastructure, governance and organizational requirements, legal matters, payment and settlement models, reconciliation procedures and risk managers, it said. </p><p>Project CBDCPh is a &quot;major step&quot; for the entire financial industry, BSP Governor Benjamin E. Diokno said during the 14th Annual Group of 24/Alliance for Financial Inclusion Policymakers’ Roundtable discussion at the IMF-World Bank Spring Meetings.<br/> <br/>“Learnings from the pilot will be critical in constructing the BSP’s medium- to long-term roadmap for more advanced wholesale CBDC projects that shall further strengthen the Philippine payment system,” Diokno said. </p><p>&quot;The BSP is exploring the potential use of wholesale CBDCs in areas where these can yield the greatest value-adding benefits to the payment system,&quot; the central bank said. </p><p>The BSP however, clarified that the project is restricted mainly to wholesale transactions among banks and other financial institutions.</p><p>Diokno said it could ease challenges in cross-border foreign currency transfers, settlement risk exposure from using commercial bank money in equities and operating an intraday liquidity facility.</p><p>Other central banks globally, including China and South Korea, have also been testing the use of CBDCs.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/16/21/bsp-eyeing-central-bank-digital-currency-use-in-near-future">BSP eyeing central bank digital currency use in &#x27;near future&#x27;, Diokno says</a></li>	<li><a href="https://news.abs-cbn.com/business/05/07/21/bsp-studying-central-bank-issued-digital-currency-cryptocurrency">Bangko Sentral &#x27;studying&#x27; central bank-issued digital currency, says Deputy Gov</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1831376" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The Bangko Sentral ng Pilipinas on Wednesday said it would 'pursue' a pilot project on the use of central bank digital currency (CBDC) for wholesale transactions.