Philippine central bank governor opposes ban on cryptocurrencies

The Governor of the Philippine central bank (BSP), Felipe Medalla, in an interview with Forkast said the agency does not plan to ban digital assets.

In his words, cryptocurrencies currently offer little use for real-world payments due to high volatility. Medalla also noted Bitcoin’s harm to the environment.

\”A useful use case for [cryptocurrencies] is evading government monitoring. The question is what social benefit does that bring?\”, — said the head of the BSP.

Medalla argues that in most states power is imperfect, but it serves the common good, so \”there is no need to weaken the government.\”

\”Some crypto assets have lost almost two-thirds of their value in a very short period. So my advice: if you’re going to buy this, don’t invest money you can’t afford to lose.\”

The BSP chair outlined plans for the agency to test the national digital currency by the end of 2022. Lessons from the pilot project are being used to determine the next steps in developing CBDC.

In January, the Philippines’ largest bank, UnionBank, announced the launch of trading and custody of cryptocurrencies. The company did not specify a likely release timeline.

Earlier, Binance CEO Changpeng Zhao outlined the company’s plans to obtain a license in the Philippines. In July, Infrawatch PH urged the Department of Trade and Industry to begin an investigation into the Bitcoin exchange for illegal marketing campaigns.

Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.