Philippines Prepares for AI-Blockchain Convergence in Financial Transactions

The Philippine economy is preparing for the integration of AI and blockchain technology, which will transform the way financial transactions are conducted. Paul Soliman, CEO of BayaniChain and Blockfy, argues that AI will act as a decision-making layer in the digital economy, while blockchain will settle and provide provenance.

Currently, most financial systems were designed around human interactions, whereas blockchain systems are built for programmable rules, cryptographic authorization, and continuous settlement. Researchers at the Cambridge Centre for Alternative Finance have found that autonomous software executing transactions on-chain is a practical solution, using stablecoins as a medium of exchange.

The Philippine government has started to move towards embracing this technology, with the Bangko Sentral ng Pilipinas closing the application window for new Virtual Asset Service Provider licenses in September 2022. The BSP has also implemented measures to regulate cryptocurrency service providers and ensure compliance with existing laws.