Enhancing Fiscal Transparency in the Philippines
In an initiative aimed at enhancing fiscal transparency in the Philippines, Senator Bam Aquino has proposed the idea of integrating the nation’s budget into a blockchain framework. He asserts that this approach would allow citizens to trace every cent spent by the government, fostering accountability.
Senator Aquino’s Vision
Speaking at the Manila Tech Summit, Aquino remarked,
“No one would dare obscure their transactions on a blockchain system where each action is recorded and made visible to all citizens. However, we are eager to take this first step.”
If successful, the Philippines could become a pioneer in blockchain-enabled national budget management, although Aquino admitted that the level of support for this initiative remains uncertain. At the moment, there is no formalized proposal for a comprehensive blockchain-based budget management strategy for the country.
Current Blockchain Initiatives
Aquino’s proposal seeks to extend the functionality of the existing blockchain system implemented by the Department of Budget and Management (DBM), which is already in use for some financial documents, marking it as Asia’s first live on-chain budget platform. BayaniChain, the Philippine blockchain firm that supports the DBM’s initiative, expressed its support for Aquino’s vision while clarifying that they are not directly collaborating with the senator.
Technology and Accountability
Paul Soliman, the co-founder and CEO of BayaniChain, emphasized that while blockchain technology alone cannot eradicate corruption, it promotes transparency by creating unalterable records that hold public officials accountable. He explained that BayaniChain provides the necessary technology that connects the DBM’s internal systems to a public blockchain, allowing critical budget documents—like Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs)—to be shared and confirmed online with on-chain security.
The DBM’s current budget framework utilizes Polygon’s Proof-of-Stake network, a solution that enhances the Ethereum blockchain, ensuring that the consensus and transparency characteristics are seamlessly integrated into this pioneering budget management system.
