The Bangko Sentral ng Pilipinas (BSP) issued a publication last week entitled “Frequently Asked Questions (FAQs) on Virtual Currencies”. The publication explained topics from the definition of a virtual currency (VC), its difference from cryptocurrency, the BSP’s approach towards virtual currencies, and some advice to investors.
Cryptocurrency has been garnering a lot of attention lately from the Philippine public especially after news came out that the masterminds behind the country’s biggest cypto scam were finally caught.
Crypto scams are common in the Philippines which is why the BSP urges potential investors to fully know and understand cryptocurrencies before investing in them:
“The public is advised not to blindly follow the crowd, adopt herd mentality, or engage in speculative transactions. The public should exercise extreme caution at all times when dealing with VC products and transactions in general.”
Despite the warning, the BSP mentions that it has a “balanced” approach to the technology. In the publication, the central bank also listed the different benefits that cryptocurrencies may offer such as improvements in remittances and wire transfers, electronic payments, and financial inclusion in the country.
Here is a copy of the publication: