The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), has completed trials for a proof-of-concept wholesale central bank digital currency (CBDC) called Project Agila. This CBDC is aimed at facilitating round-the-clock fund transfers among financial institutions. The initiative utilizes distributed ledger technology hosted on Oracle Cloud Infrastructure, allowing secure and efficient transfer of funds even during non-business hours. Wholesale CBDCs, unlike retail CBDCs, are intended for use by commercial banks and financial institutions in high-value transactions. BSP Governor Eli M. Remolona, Jr. highlighted the potential benefits of wholesale CBDCs, including enhanced liquidity management and reduced settlement risks. The pilot results will inform the BSP's future CBDC roadmap and its efforts to improve the efficiency and resilience of the national payment system. While the BSP has not committed to adopting a CBDC, this trial showcases its commitment to embracing emerging technologies and digitizing the nation's financial infrastructure.



Other News from Today