The Philippines central bank said it would carefully study cryptocurrency as a useful financial tool to move money around or a financial instrument before issuing rules on digital assets.

In an interview, Bangko Sentral ng Pilipinas (BSP) Deputy Gov. Diwa Guinigundo said they need to understand first the implications of cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and others, to be able to come up with a best practice regulation to promote the new currency.

“We cannot just issue regulations on something we do not fully understand,” Guinigundo said. “It would be unwise to regulate a sector just for the sake of regulating, but then later on pullback our policies because we made a mistake. That is not sound policy,” he added.

However, the acting central bank head added the country’s monetary policy has no issue with blockchain. In fact, he said, the BSP is encouraging the application of the distributed ledger technology (DLT) in t…

This article appeared first on Cryptovest

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