In an bold bid to make the Philippines as Asian monetary know-how (fintech) capital, the chairman of the Home Committee on Methods and Means on Monday filed Home Invoice (HB) 7864, or the Blockchain Expertise Growth Act.
Albay Rep. Joey Sarte Salceda stated his invoice goals to make sure that blockchain know-how is legally acknowledged and controlled within the nation.
“Blockchain is actually more than just cryptocurrency. At the heart of blockchain is technology that makes the storage and updating of records more secure. It also lowers transaction costs and is very difficult if not impossible to defraud,” Salceda stated.
With blockchain, Salceda stated he expects transaction prices for cash transfers and different monetary companies to be cheaper for Filipinos.
“Blockchain is also very secure and the records are highly portable. That makes it a perfect tool for programs such as the National ID system, better records management in Philhealth and better distribution of social benefits,” Salceda added.
Blockchain, or distributed ledger know-how, is a technique of passing info from one terminal to a different in a completely automated and safe method. One get together to a transaction initiates the method by making a block.
Salceda stated this block is verified by hundreds, and even hundreds of thousands of computer systems distributed across the internet. The verified block is added to a series, which is saved throughout the online, creating not only a distinctive document, however a singular document with a singular historical past.
He added the way in which that blockchain distributes transaction histories throughout the online is a purpose why it’s used for cryptocurrencies corresponding to Bitcoin.
“Blockchain can be applied across so many areas in both the public and private sectors. I want us to grab the opportunity to be a hub for this development,” stated the lawmaker.
The measure identifies the permitted and restricted makes use of of blockchain know-how whereas establishing the Bangko Sentral ng Pilipinas (BSP) because the policy-making and regulatory company for using blockchain within the monetary sector.
It additionally encourages using blockchain within the broader economic system and using blockchain know-how in human growth applications.
The measure additionally releases blockchain use from overregulation by native governments; and explores using blockchain within the Nationwide ID system.
Earlier, Salceda stated that he hopes to steer the cost in Congress for insurance policies that may make the nation a hub for monetary know-how corporations fleeing Hong Kong on account of stringent rules, and Singapore and Shanghai on account of oversaturation.
“We have a large untapped market of consumers of financial products. And we have an untapped labor force that could be trained to become skilled workers in this field. The Philippines is definitely in the game,” Salceda stated.
Salceda has additionally a $20 billion in annual international direct funding because the nation’s purpose for speedy nationwide growth.
The lawmaker stated the efforts to make the nation a fintech capital are a part of his purpose to fulfill this nationwide goal.