The Philippines can be a blockchain powerhouse, and the BSV blockchain can help

Countries around the world are looking for innovative ways to stand out from the crowd and lead regional economic recoveries after the setbacks of recent years. The Philippines in particular shows promise of achieving this, with new President Ferdinand Marcos Jr. which highlights the growth potential of information and communication technology. He has called for a “digital transformation” of the country at all levels, from education and agriculture to government records and physical infrastructure – and is looking for ideas that can enhance this transformation, set the Philippines apart from others and even mark it as a world leader.

This vision, along with a streamlining of foreign investment rules, presents a golden opportunity for blockchain technology. A fast, versatile and scalable blockchain like BSV will be useful across several key development sectors, such as helping to streamline everything from financial transactions to supply chains, healthcare, land reform and bureaucracy.

The Philippines can be a blockchain powerhouse and global leader

In his State of the Nation address to Congress in May 2022, President Marcos announced a series of reforms and initiatives to develop the country’s technological infrastructure and digital economy. Aiming to help the Philippines become more competitive in the world of the “Fourth Industrial Revolution”, President Marcos’ plans called for a “digital transformation” and “universal connectivity” that includes the digitization of citizen IDs, healthcare and land registries . Plans to upgrade the underlying physical infrastructure for IT communications across all islands in the archipelago are also in the works.

The Department of Information and Communications Technology (DICT), he said, “now has the daunting task of transforming our government into a nimble bureaucracy that is responsive to public needs, provides good and solid data to ensure informed decision-making, as well as enabling secure and seamless access to public services.”

There would also be education reforms to focus on STEM subjects. The Public Service Act has been amended to remove restrictions on foreign investment as the Philippines seeks “an increase in direct investment from foreign players.”

“Ecozones will be fully supported to bring in strategic industries, such as those engaged in high-tech manufacturing, health and medical care, and all new technologies,” the president revealed.

“Our tax system will be adjusted to catch up with the rapid development of the digital economy,” he added.

In February 2023, President Marcos signed an executive order creating a “green lane” for foreign investment in areas deemed “highly desirable projects” of strategic importance. This includes a computerized business permit and licensing system that streamlines approvals and speeds up transaction times.

That same week, the Philippines’ central bank, the Bangko Sentral ng Pilipinas (BSP), called for the elimination of small-value wire transfer fees to promote cashless payments for all. Governor Felipe Medalla said it was “in pursuit of a financial system that leaves no one behind.”

Economic recovery and annual GDP growth targets of 6.6–8% by 2028 are also a Marcos priority, along with a reduction in poverty to single-digit percentages and the achievement of upper middle-income status for the country by 2024.

The Philippines will identify projects with “high multiplier effects,” he said. The president specifically referred to the large agricultural and food supply sector, the country’s large creative/freelance workforce, tourism and health care as areas worthy of attention.

In all areas mentioned above there are use cases for the BSV blockchain. It allows for fast, cashless/digital payments, both domestic and international, as well as tokenization of assets, storage and processing of any public record or business contract.

BSV also handles this data in a way that promotes transparency and fairness. Transactions on BSV are almost instantaneous and cost one thousandth of a US cent each. The high bandwidth and promise of permanent storage on the blockchain’s “universal ledger of truth” allows everyone in a process to verify that records exist and are genuine at all times, and quickly detect any discrepancies or changes.

“Productivity-enhancing investments will be promoted,” President Marcos added in his State of the Nation address. “Our country must become an investment destination, capitalize on corporate recovery, and tax incentives for businesses … and economic liberalization laws, such as the Public Service Act and the Foreign Investment Act.”

BSV’s work in the Philippines has already started

The province of Bataan is one of the Philippines’ special economic zones. Located on the western side of Manila Bay, it also serves as a hub between Clark Freeport and the Special Economic Zone in Central Luzon and Metro Manila.

CoinGeek’s “BSV Stories” series recently featured the Philippines and Bataan in particular. Provincial Governor Jose Enrique Garcia III said his administration “is keen to look at blockchain solutions for various services we can provide for our constituents.”

“We want technology to be at the forefront of government, and for people to provide and receive efficient public services,” he added.

Representatives from the BSV industry attended Bataan’s Global Blockchain Summit to communicate with locals and identify new opportunities. They emphasized the importance of distinguishing BSV-based data services from older blockchain clichés such as token/asset trading and unregulated finance.

Blockchain research and development firm nChain also signed a Memorandum of Understanding (MOU) with the government of Bataan in January 2023, intending to develop solutions for government services, products and processes.

“nChain is committed to working with governments around the world to digitally transform their economies. Through this memorandum of understanding with Bataan, we are excited to begin driving the state forward by providing expert advice and blockchain-based solutions for digitizing government services, products and processes using our robust portfolio of intellectual property rights. With the BSV blockchain powered by nChain, Bataan can look forward to an efficient, secure and transparent system to digitize various branches and agencies in the state, and offer better services and products to the people, says nChain AG Chairman Stefan Matthews.

Enthusiasts of blockchain technology naturally jump at any mention of a country’s plans to seek “digital transformation” and technological innovations. However, decision makers must remain skeptical of overly hyped blockchain projects with no proven track record or vague notions of “using blockchain” without clearly defined methods for doing so.

With its Bitcoin pedigree going all the way back to 2009, BSV is the one blockchain that can claim both long-term stability and a vision for big data applications. nChain’s work in Bataan provides a great chance to demonstrate how this works practically, not only in computer applications, but in entirely new economic structures. This could converge with the Philippine government’s overall quest to find “high multiplier effects” for efficiency and growth through digital transformation, making the country an inspiration to others.

Watch nChain’s Stefan Matthews: “Philippines has the most to gain from blockchain adoption”

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