IMF Cooperates With Central Bank Of The Philippines On Wholesale CBDC Project

Key Points:

• The International Monetary Fund (IMF) plans to partner with Philippine central bank Bangko Sentralng Pilipinas (BSP) to create a central bank digital currency (CBDC).
• The IMF will act as an advisor.
• The partnership between the IMF and the BSP is said to be aimed at developing a wholesale CBDC.

The International Monetary Fund (IMF) has announced a planned collaboration with Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, to create a central bank digital currency (CBDC).

The International Monetary Fund (IMF) recently announced plans to partner with Philippine central bank Bangko Sentralng Pilipinas (BSP) to create a central bank digital currency (CBDC).

The IMF says its role will be to advise the Philippine central bank on the technical details involved in creating a CBDC. In addition to providing technical assistance, the IMF also noted that it will participate in training BSP staff on digital currency applications.

The partnership between the IMF and the BSP is said to be aimed at developing a wholesale CBDC, an initiative the Philippines has been exploring since May.

The central bank of the Philippines favors wholesale CBDCs, citing that retail CBDCs are seen as having limited appeal due to the variety of digital payments available in the country.

In addition to its use in cross-border transactions, the IMF and BSP are also keen to explore the use of CBDC in the stock market. Both sides believe that wholesale CBDCs will be key to reducing counterparty risk and can address challenges in automating intraday liquidity instruments.

As updated in an earlier Coincu News article, in September Governor Perry Warjiyo of the Bank of Indonesia has revealed further steps in the country’s intentions to introduce a central bank digital currency (CBDC), for different digital economic and financial operations.

Following discussions with central bank officials, the governor stated that the Bank of Indonesia intended for the digital rupiah to be integrated, connected, and interoperable with CBDCs from other countries.

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