Despite the collapse of the Bitcoin price through 2018, bankers and regulators still seem to be on their toes about cryptocurrency. After all, this newfangled asset class presents a threat to the traditional banking system and fiat monies, as something like BTC is neither directly controllable or taxable.
So, it should come as no surprise that the Philippines, which some see as a hub for crypto adoption (I personally know many coworkers that live there), is looking to crack down on the industry.
Philippines Worried About The Rise of Crypto
Speaking to PhilStar Global, a local English media outlet, Bangko Sentral ng Pilipinas (Central Bank of the Philippines) representative Benjamin Diokno said that his organization will continue to address the “risks” that come alongside the usage of cryptocurrency.
Diokno, a governor of the institution, explained that he is worried about the usage of digital assets in terrorist financing, which is a pertinent issue with entities like Hamas and ISIS purportedly using Bitcoin to exchange value. With the Philippines experiencing an array of deadly bombings over recent years, it’s no surprise that the governor is on edge about this subject matter.
This isn’t the only issue that the bank sees with cryptocurrencies, however. Diokno’s peer, deputy governor Diwa Guinigundo, told a crowd during the publishing of a Bitcoin-related book warned that BTC and its ilk aren’t viable as alternative forms of money. Guinigundo ventured that due to Bitcoin’s volatility, it would be hard to use it as a unit of account, medium of exchange, and store of value. He elaborates:
“There cannot be a total disregard for a central bank or a third party that provides lender of last resort facility.”
Of course, a central banker wouldn’t be caught dead pushing any other narrative. Anyhow, the reason why there is this newfound scrutiny from the Philippines is seemingly a result of a report that from 2017 to 2018, the value of domestic cryptocurrency payments doubled. The report from PhilStar made no mention of explicit plans, but a crackdown is likely on the table, especially if more domestic money continues to flow into borderless, censorship-resistant digital assets.
What’s interesting, the Philippines recently got its first Bitcoin automated teller. Announced earlier this year, the Union Bank of the Philippines, a banking giant that is the seventh largest in the country, launched two buy-and-sell cryptocurrency machines. Union Bank purportedly collaborated with the nation’s central bank, to ensure that this offering is compliant.
India Looks to Ban(?) Bitcoin Altogether
The Philippines’ recent statements of concern in regards to cryptocurrency comes just days after Bloomberg Quint claimed that India is planning to eliminate all Bitcoin usage within its borders. The article, which cited a “draft bill”, revealed that regulators in India, from multiple financial and judiciary agencies, revealed that those who involve themselves in the “sale, purchase and issuance of all types” of crypto assets, including Bitcoin, could lead to a ten-year jail sentence and/or fine.
At the same time, the Reserve Bank of India and its partners have purportedly also proposed the creation of a “Digital Rupee” to fill in the void left by a ban on Bitcoin. This exact strategy has purportedly been “recommended by a panel headed by Economic Affairs Secretary Subhash Chandra Garg”, and has been backed by an array of other respected governmental agencies.
Funnily enough, the Reserve Bank has since come out to state that it is unaware of any such bill, and that it hasn’t been in any contact with its regulator peers about a new cryptocurrency crackdown. Regardless, many pundits have stated that if India was to try and kill domestic Bitcoin use, it may backfire and actually result in adoption. This, of course, would be the Streisand Effect in action.
