The introduction of blockchain, along with cryptocurrency, shook the world with its nearly fraud-proof distributed ledger technology.
It’s been tapped in its potential for all sorts of industries, including the area of finance. Some nations are still dubious to this day, while some are embracing this recent tech that is now reshaping the finance industry.
The Philippine government has been expressing its support for this aspect of digital transformation. As a matter of fact, a law was filed in Congress with an ambitious goal to make the country the fintech center of Asia through blockchain.
Authored by Albay Rep. Joey Salceda, the Blockchain Technology Development Act (House Bill HB 7864) aims to recognize and regulate the country’s blockchain technology.
The bill also designates the Bangko Sentral ng Pilipinas (BSP) as the policy-making and regulatory agency for blockchain in the financial sector.
Salceda foresees blockchain’s potentials in both public and private sectors. Blockchain has the advantage of having advanced security in protecting storage, updating records, and transmitting files while reducing transaction costs.
Blockchain may soon play an important role in government programs, such as the deployment of PhilSys or the national ID system and the distribution of financial aid and social benefits.
The use of blockchain would make money transfers and other financial services more affordable and accessible to many Filipinos.