The Central Bank of Philipines, BSP or Bangko Sentral ng Pilipinas, Will Keep Monitoring Cryptocurrency Closely

Benjamin Diokno, who is the governor of the central bank of the Philippines, warned users against the potential use of cryptos for terrorism financing, underscoring that the BSP or Bangko Sentral ng Pilipinas is going to continue to keep an eye on their use in the country carefully. The news was published on the 10th of June this year.

Additionally to the remarks and warnings of Diokno, the deputy governor of the BSP, named Diwa Guinigundo, provided some further insights into the stance of the institution toward cryptos during the launch of the unnamed book about Bitcoin or BTC.

The governor of BSP criticizing the potential of BTC

The governor of the central bank ostensibly criticized the possibility of BTC to function as the unit of account, store of value, as well as medium of exchange, claiming that the top volatility of the crypto inhabits its usefulness on all of the three points.

Diokno even recognized that blockchain, as well as specific implementations of distributed ledger technologies of DLTs, may actually be useful for the settlements and payments for the peer-to-peer transactions, presenting this as the potential risk to the traditional banking sector.

He actually said that game theory dictates possible dysfunction when there is a breakdown of the market when everyone distrusts each other. According to him, there can’t be a total disregard for a central bank or a third party which provides lender of last resort facility.

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