Blockchain Could Clean Up Government Spending, Philippines Official Says
According to Department of Information and Communications Technology (DICT) Sec. Henry Aguda, the federal government is taking concrete steps to check whether or not blockchain could make the Philippine nationwide finances extra open and traceable.
He informed the Malacañang Press Corps {that a} working prototype can be proven to senators and representatives to show the concept can work. The transfer comes as lawmakers push a invoice that may put finances paperwork and transaction data on a distributed ledger for public verification.
DICT Moves To Build Prototype
Aguda stated the nation has “quite a lot of specialists on blockchain,” and that one in every of his duties is to supply a minimal viable product so lawmakers can see a reside demo earlier than any full rollout.
He additionally talked about that the DICT has been experimenting with stablecoin techniques to hint peso transactions in banks. Reports say he’ll ask President Ferdinand Marcos Jr. to certify the associated invoice as pressing, signaling that the manager department could press for sooner motion.
Senate Bill 1330, titled the “Philippine National Budget Blockchain Act,” would require the manager department, Congress, and native governments to add and publish their finances transactions on a blockchain.
If enacted, residents would be capable of comply with allocations, bids, disbursements, and contracts on a publicly seen chain. The invoice additionally goals to borrow options from the Full Disclosure Bill so folks can evaluate contracts and expense experiences.
On Transparency & Security
At a Senate listening to on SB1330, the Committee on Science and Technology mentioned how blockchain may assist expose delays or anomalies in spending. Sen. Bam Aquino informed the panel that inserting data on a public ledger may make finances processes “clear, trustworthy, and safe.”
Advocates say the seen chain would let atypical residents observe the place funds transfer and spot mismatches sooner than present techniques enable.
Legal Expert Casts Doubt On Blockchain Budget Push
Not everyone seems to be bought on the concept. Florin Hilbay, former Solicitor General and now dean at Silliman University College of Law, requested plainly:
“Do we actually have to put the finances on a blockchain?”
He warned that what begins as a promise of openness may flip right into a centralized database held on a couple of servers run by contractors.
Hilbay additionally pointed to value considerations, saying the plan allocates PhP500 million ($8.6 million) as an preliminary expense, and he argued that good contracts and validator nodes add complexity and new technical dangers.
Aguda stated the DICT is not going to faucet public funds for the prototype and that personal teams have already supplied assist.
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