Philippine Central Bank: Wholesale CBDC Can Be Used for Securities Settlement and Cross-Border Payments

CoinFeed July 2nd news, the Philippine central bank (BSP) in a recently released "Project Agila" report pointed out that wholesale central bank digital currency (wCBDC) potential application scenarios include financial securities settlement and large-value cross-border payments. wCBDC is operated by commercial banks and financial institutions opening accounts at the central bank, using distributed ledger technology for real-time point-to-point settlement, and is expected to maintain a similar existing RTGS system architecture while achieving higher automation, faster processing speed, and lower transaction costs. The BSP pointed out that using wCBDC for securities transaction settlement helps shorten the time gap from trade to final settlement, reduce settlement risk, and will use the project experience to formulate subsequent CBDC roadmap.