A quick look at some of the data released by BSP’s Technology Risk and Innovation Supervision Department (TRISD) shows us that the total volume of crypto tx’s taking place within the country have more than doubled between 2017 and 2018.($189.18 million to $390.37 million).
- The BSP is currently making use of a regulatory sandbox approach that will allow blockchain technology to foster and grow in a legally compliant manner.
- Over the past few years, the Filipino crypto market has nearly doubled in its overall value.
Warning Users About Potential Risks Associated with Cryptocurrencies
According to a news story released by Philstar Global recently, the central banking authority of the Philippines (BSP) has just issued a circular informing the public about the various “risks” associated with digital currencies.
To elaborate on the issue, we can see that during a press conference earlier this week, the governor of Bangko Sentral ng Pilipinas (BSP) — Benjamin Diokno — spoke out against the dangers of investing in alt-coins and how these digital assets can be used by miscreants for facilitating money laundering/terrorism-based activities.
Dionko’s views were echoed by his deputy Diwa Guinigundo, who too is of the opinion that crypto assets can never fully replace fiat currencies (or serve as long-term SOVs).
In his opinion, the asset class faces too much volatility for it to serve as an efficient medium of exchange. With that being said, the Governor did concede that blockchain technology in itself was extremely innovative and had the potential to completely “revolutionize the banking industry”.
Crypto Exchanges Required to Register as “Remittance and Money Transfer” Companies
Guinigundo was recently quoted as saying that P2P payment systems (that were built atop various blockchain ecosystems) could introduce a lot of transparency within the world of global finance since they could potentially allow users to “bypass the need of a formal banking system altogether”.
“For this reason, 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.”
Notably, the BSP has been “closely monitoring” any crypto activity taking place within the Philippines since 2017. In this regard, we can see that the regulatory body released a circular sometime back asking all crypto exchanges to “register as remittance and money transfer companies” so as to avoid facing any issues later down the line.
Last but not least, the BSP has recently approved the registration requests of 10 new crypto exchanges. It now remains to be seen how the future of the crypto industry plays out within the nation’s borders.