Central Bank of Philippines is concerned about the increasing usage of cryptocurrencies

Central Bank of Philippines is concerned about the increasing usage of cryptocurrencies

The leader of the Central bank in the Philippines informed about the threats that the country can face because of growing cryptocurrency appropriation.

On June 10, Benjamin Diokno, who is the head of the Bangko Sentral ng Pilipinas, was cited by The Philippine Star, as he said the organisation, which he leads, will resume addressing the application of cryptocurrencies, notably the tech’s possible employment in the funding terrorism.

Diwa Guinigundo, deputy governor of the central bank, further mentioned about cryptocurrency’s controls as a replacement for fiat currencies, as a means of exchange and real value.

And as blockchains are very useful for settlement, they are also allowing people easily sidestep the whole banking system.

Guinigundo also mentioned that this can bring to a market collapse, because of absolute distrust among everyone. To bring everything to stability, Central bank decided to use sandboxes to keep an eye on such technologies like blockchains.

The central bank is concerned because the usage of cryptocurrencies is continually rising. The Philippine Star earlier reported that virtual currency trades’ value has risen from $189.18 million to $390.37 million in just one year.

The central bank proclaimed that it doesn’t accept any cryptocurrency until it's confirmed by the organisation itself or until it isn’t backed by a commodity.

Nowadays, there 10 crypto exchanges that were listed in the central bank of the Philippines.

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