Philippines too Pioneer National Blockchain Budget System, Combatting Corruption
The Philippines is poised to become the frist nation globally to implement a blockchain-based system for its entire national budget, a move designed to drastically improve openness and curtail corruption following a series of high-profile scandals, including a multibillion-peso flood control scam.
The initiative, spearheaded by the Department of Information and Communications Technology (DICT), aims to create a tamper-proof digital record of all public funds, ensuring accountability at every stage of the budgetary process. According to a senior official, the system will address longstanding concerns about the misuse of taxpayer money.
“Once the budget has been allocated officially, we’ll start constructing the blockchain that will not cater just to the budget, but for the whole CADENA (citizen access and disclosure of expenditures for national accountability) execution,” the official stated. CADENA, a pending bill prioritizing full public disclosure of financial transactions via a secure digital ledger, is a cornerstone of the Marcos governance’s anti-corruption efforts.
The full transition to a blockchain-based system is anticipated by 2027,encompassing all phases from budget approval and allocation to disbursement and reporting. The government expects the 2026 national budget to be the first fully managed within this new, secure framework.
A consortium blockchain, comprising the DICT, the Commission on Audit, and the Department of Budget and Management, is slated for launch before the end of the year or early next year. Each agency will maintain a transparency server to monitor project status in real-time. A private sector partner is contributing to the advancement of the public blockchain at no cost to the government.
“Thes are tools to simplify things,” explained a DICT undersecretary. “rather of entering data repeatedly… once we adopt the blockchain, it will only be done once and you can already see all agencies. That means we will get rid of repetition. We will do away with redundant costs.” the technology’s application is expected to expand beyond the budget cycle to encompass other critical government services.
Beyond bolstering financial transparency, the Philippines is also attracting important foreign investment in its digital infrastructure. G42, a United Arab Emirates-based contact center, is reportedly planning to invest between $300 million and $500 million over the next three to five years.
According to the official, data center companies recognize the Philippines’ potential as a regional data hub, with opportunities to export artificial intelligence (AI) services in the future. President Marcos’ recent visit to the UAE also yielded discussions with DAMAC Digital regarding the establishment of a data center in laguna.
These developments signal a broader commitment to digital transformation within the Philippines, positioning the nation as a potential leader in leveraging blockchain technology for enhanced governance and economic growth.
Why: The Philippines is implementing a national blockchain budget system to combat corruption and improve transparency in government spending, following several high-profile scandals.
Who: The initiative is spearheaded by the Department of Information and Communications Technology (DICT), with collaboration from the Commission on Audit, the Department of Budget and Management, and a private sector partner. The Marcos administration is also a key driver through the CADENA bill.
What: The Philippines will become the first nation to utilize a blockchain-based system for its entire national budget, creating a tamper-proof digital record of all public funds. The system will encompass all phases of the budget cycle, from approval to disbursement.
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