‘Every peso used can be traced transparently’ — Sec. Aguda
As part of its anti-corruption drive, the Department of Information and Communications Technology (DICT) is pushing for the adoption of blockchain technology to bring transparency and accountability to public spending.
Blockchain is a digital ledger system where transactions are permanently recorded in “blocks” that are linked chronologically and secured by encryption. As entries cannot be altered without detection, the system is considered tamper-resistant and highly transparent.
DICT Secretary Henry Aguda said the initiative follows President Ferdinand Marcos Jr.’s directive to harness digital tools against corruption by 2028.
“Corruption starts with money; if the money is not properly traced or checked, it becomes problematic,” Aguda said in a press briefing on Monday.
The Bangko Sentral ng Pilipinas (BSP) has been developing a Central Bank Digital Currency (CBDC) for the past three years. Aguda said that paired with blockchain, the CBDC would allow every peso in the national budget to be digitally tracked — from disbursement to expenditure — ensuring no misuse of funds.
“With blockchain technology integrated into the national budget and the Central Bank Digital Currency in place, every peso used can be traced transparently,” Aguda said.
Aguda stressed that privacy safeguards are built into the system, with encrypted data and transactions validated only by trusted parties.
Representative Brian Poe, a key member of the Blockchain Council of the Philippines, has filed House Bill 4489 to establish a national budget system powered by blockchain.
“We want all government transactions to be verified on the chain,” Poe said, adding that citizens would eventually be able to view and track government spending through a public portal.
Under the measure, DICT would spearhead the technical work, the Department of Budget and Management would feed disbursement data, and the Commission on Audit would serve as the verifying authority to ensure records are accurate and consistent.
Aguda said lawmakers, regulators, private firms, and international partners are aligned in making the plan a reality. “This is the president’s directive, and the good thing is that everyone wants to help make this plan happen,” he said.
