Two days ago, the Philippine Bureau of the Treasury in collaboration with the UnionBank as well as the Philippine Digital Asset Exchange launched a blockchain-enabled mobile application. The purpose of this application is to distribute government-issued treasury bonds.
It is worth mentioning that, millions of people in the country do not possess a bank account. The mobile application dubbed Bonds.PH is aimed at providing easy investment options to people without a bank account. Notably, thanks to Bonds.PH people across the country will be able to invest in the BTr’s newest retail treasury bond RTB-24.
Blockchain and government-issued treasury bonds
Let’s have a look at this application, to learn more about the project. Interestingly, the application will allow citizens of the country to easily invest in retail treasury bonds. The minimum amount is 5,000 Philippine pesos.
Moreover, app users will be able to make instant payments using internet payment services. For example, users will have the ability to use InstaPay, GCash, as well as Paymaya. Furthermore, clients can also pay through internet banking or over-the-counter payment through their UnionBank accounts.
It is worth noting that, the Bureau of Treasury made the decision to enable the app with distributed ledger technology to save time as well as costs during the manual verification and settlement processes. Additionally, by using the distributed ledger technology, the Bureau also wanted to ensure a feasible, secure, and economically viable bond distribution process.
In 2019, UnionBank also launched a payment-focused stablecoin backed by the Philippine peso. The purpose of this decision was to drive greater financial inclusion in the country.
According to estimates, almost 77% of adults in the country do not possess a bank account. As a result, thanks to a blockchain-enabled mobile application, millions of people will be able to invest in government-issued treasury bonds. This mobile application is a step forward and the Bureau of Treasury made the right decision.