According to the Philippines Star report on June 10, Phillippine’s Central Bank, Bangko Sentral ng Philipinas will closely monitor the use of cryptocurrencies exchange in the country.
Benjamin Diokno, the governor of the central bank (BSP) has given a warning that there is a potential threat on the usage of virtual currencies for the terrorism funding and underscored that the Bangko Sentral ng Philipinas would keep a close monitor their use in the country.
Diokno seemingly criticized Bitcoin potential to function as a unit of account, medium of exchange and store of value, claiming that the top cryptocurrencies volatility inhibits its usefulness on all three points.
Diokno sees Blockchain technology can be useful for payments and settlements for peer-to-peer transactions, impersonating this as a potential risk to the traditional banking sector.
“Game theory dictates possible dysfunction when there is market breakdown, when everyone may distrust one another. There cannot be a total disregard for a central bank or a third party that provides lender of last resort facility,” Diokno said.
To solve any problem with robust consumer and investor protection, the Central Bank (BSP) is going to approach Fintech development using regulatory sandboxes to balance the prospective benefits of innovative financial technologies.
Fintech Development is an emerging industry that uses technology to improve activities that use technology to improve operations in finance. Many financial institutions are already implementing Fintech solutions and technologies to enhance and develop their services, as well as gaining an improved competitive stance.
BSP has approved 10 Cryptocurrencies exchanges:
Till date, BSP has approved the registration of about ten cryptocurrency exchanges including Bexpress Inc, Coinville. Phils. Inc.
As per the Philippine Star report, Latest data from the BSP’s Technology Risk and Innovation Supervision Department showed the value of transactions involving virtual currencies almost doubled to $390.37 million last year from $189.18 million in 2017.
BitMex is a P2P crypto product trading platform, and it is a Peer-to-Peer Trading Platform that offers leveraged contracts that are bought and sold in Bitcoin, has invested in the Philippine Digital Assets Exchange (PDAX).
Co-founder and the CEO of PDAX Nichel Gaba said, “Through digital assets and blockchain, we want to even the playing field to give every Filipino from all walks of life the ability to grow their hard-earned wealth.”
“With the support of BitMEX and by leveraging blockchain technology, we hope to create a digital financial market that is accessible to everyone,” Gaba added further.
Arthur Hayes, the BitMEX CEO, said that BitMEX Ventures is “committed to advancing financial inclusion and accessibility to trading cryptocurrencies.” And, “We are confident in the transformative potential of cryptocurrency and PDAX’s ability to widen access to the Philippines market and provide the tools to learn more about financial markets.”
Image Credit: Jakarta Globe