Future of money

Bangko Sentral ng Pilipinas Governor Benjamin Diokno refused to categorize cryptocurrencies as a form of currency, noting that thy cannot ‘function as either medium of exchange or unit of account’ given its volatility.

Cryptocurrencies. While there is a nice ring to it, there is always something to it that makes at least one person in the room wonder — how does this new monetary animal work?

Lately, a friend of mine has been posting on his social media account about the profits he made from a cryptocurrency trading platform, which was accessed through a mobile app.

He claims that he earned this X amount of pesos from investing and holding the same X amount for this X period of time. And so, I queried for more specifics.

“When did you start?” I asked, and so he went on talking giggly about his newfound investment, urging me to position a couple of bucks on it with the promise of having the same fate as his.

Little does this friend of mine know that cryptocurrencies were among the hot topics in the beat that I cover, with the country’s monetary authority setting its eyes on it.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno refused to categorize cryptocurrencies as a form of currency, noting that they cannot “function as either medium of exchange or unit of account” given its volatility.

According to Diokno, the same volatility prevents most central banks to back cryptocurrencies; hence, the birth of digital money, which is currently being explored by the BSP.

However, the central bank chief assured this electronic money, or central bank digital currency as they call it, won’t be rolled out within his term, similar with other central banks that won’t be issuing the same in the next five years.

The BSP announced its intentions to establish a cashlite society, reducing its printing of banknotes to lower its operational costs and stimulate the digital economy for greater financial inclusion.

Cash still remains king as before, as many still prefer the traditional means of payment for retail transactions in the country.

While this holds true, Diokno pointed out one good consequence of the pandemic. It served as a launch pad for the utilization of digital payment channels.

With the plethora of available electronic money services available, one would be confused to choose a better option, as most offer similar services, including bills payment and bank transfer.

As reported by the central bank, this greater appreciation sustained the climb on the volume of digital transactions to P102.1 million by the end of the fourth quarter of 2020 from just P93.4 million a quarter ago.

The central bank also installed a new Deputy Governor, Mamerto Tangonan, who will oversee the newly established department, the Payments and Currency Management Sector.

Tasked to maintain the safety and integrity of the local currency, the new sector will likewise ensure a well-functioning payments and cash ecosystem that supports a sustained and inclusive economic growth.

Still, among its functions is to usher the country toward the new economy, taking responsibility for the interplay of both physical and digital money.

With the plethora of available electronic money services available, one would be confused to choose a better option, as most offer similar services, including bills payment and bank transfer.

Yours truly is actually using four mobile applications to settle or purchase for something online, as one application only works with some merchants and some applications, thus, the necessity to download and use its competitor app, an effective marketing tactic.

Going back to cryptocurrencies. I myself have some placements for such, trusting several forecasts that its value would settle at a higher level by the end of this year, at least doubling the base price at which I bought it.

Keeping my eyes peeled on the signs and reading candlestick patterns, I like to count sheep, as putting those jumping wooly animals to tally helps me focus, contrary to its drowsy spell to many.

Keeping the possible profits in mind, one could always daydream about the things and places it could be spent or invested in, the latter of which, sounds better.

For the meantime, I refuse to count my eggs before they are hatched, and so I wait.