HomeNewsCBDCPhilippines to Conclude Project Agila, Wholesale CBDC Trials in 2024

Philippines to Conclude Project Agila, Wholesale CBDC Trials in 2024

Date: 08 March, 2024

Key Points:

  • Deputy Governor Mamerto Tangonan reveals the Philippines’ plan to conclude wholesale CBDC trials, Project Agila, this year.
  • Governor Remolona initially projected the wholesale CBDC launch for 2026.
  • Project Agila focuses on interbank settlement, securities transactions, and cross-border payments.
  • The Philippines actively participates in the cross-border CBDC project mBridge with China, Hong Kong, Thailand, and the UAE.
  • Six domestic institutions, including BDO Unibank and Union Bank, are part of the ongoing trials.
  • The pilot phase serves as a meticulous learning exercise to assess technology viability.
  • Originally planned with Hyperledger Fabric blockchain, the BSP shifted away from blockchain technology in February.
  • BSP aims to extend wholesale CBDC access to banks and specific financial institutions.
  • Previous trials, like one in Canada, highlighted potential limitations, such as brokers being unable to use CBDC for settlement.
  • Hong Kong Monetary Authority announces its own wholesale CBDC trials, Project Ensemble, reflecting global interest in digital currencies.

In a recent update, Deputy Governor Mamerto Tangonan of the Bangko Sentral ng Pilipinas (BSP) has revealed that the Philippines is set to finalize its wholesale central bank digital currency (CBDC) trials, known as Project Agila, within the current year. Originally, Governor Remolona had projected the launch of a wholesale CBDC either next year or by 2026.

The three primary use cases of Project Agila include interbank settlement, securities transaction settlement, and cross-border payments. Notably, the Philippines is actively participating as an observer in the cross-border CBDC project mBridge, alongside China, Hong Kong, Thailand, and the UAE.

Six prominent domestic institutions, namely BDO Unibank, China Banking Corp, Land Bank of the Philippines, Rizal Commercial Banking, Union Bank of the Philippines, and Maya Philippines, are currently involved in the ongoing trials.

Deputy Governor Tangonan emphasized that the pilot phase was meticulously designed as a learning exercise to assess the technology’s viability. Initially planned to utilize the Hyperledger Fabric blockchain, the BSP shifted its stance in February, indicating that the CBDC would not leverage blockchain technology.

While central bank accounts traditionally cater to commercial banks and select financial entities, the BSP aims to make the wholesale CBDC available to banks and specific financial institutions. However, past trials, including one in Canada, have highlighted potential limitations, such as brokers being unable to use the wholesale CBDC for settlement.

In a related development, the Hong Kong Monetary Authority has also announced its own wholesale CBDC trials, named Project Ensemble, underscoring the increasing global interest and initiatives in the digital currency space. Stay tuned for more updates as the landscape of central bank digital currencies continues to evolve.

References:

https://www.ledgerinsights.com/philippines-to-complete-wholesale-cbdc-pilot-this-year/

PHP Code Snippets Powered By : XYZScripts.com