The International Monetary Fund has urged the Bangko Sentral ng Pilipinas to refine its roadmap for a wholesale central bank digital currency, according to a report by Philstar Biz. The IMF recommended that the BSP establish clearer policy goals, legal safeguards, and success metrics before advancing to more sophisticated experimentation phases.
The IMF's guidance comes as the BSP explores a wholesale CBDC, which would be used exclusively by financial institutions for interbank settlements and large-value transactions. The international lender emphasized the need for a robust legal framework to address issues such as data privacy, cybersecurity, and the central bank's liability in the event of system failures.
The BSP has been conducting research and pilot tests on a wholesale CBDC under its Project CBDC initiative. The IMF's recommendation aims to ensure that the Philippines' digital currency development aligns with international best practices and mitigates potential risks to financial stability.