A Philippine Senator proposes blockchain for the national budget, aiming to improve transparency and accountability, and citizen access to government spending data.
Senator Bam Aquino has proposed a plan to place the Philippines’ national budget on a blockchain platform. During the Manila Tech Summit, according to Aquino, this would enable total traceability of every peso that the government spends by the citizens. He admitted that it may be radical to place all government transactions on a public blockchain, but demanded the need to be transparent.
Philippine Lawmaker Backs Blockchain to Curb Fund Misuse
Blockchain technology is a digital banking system that works as a safe and immutable record of transactions, in which any changes made after a transaction cannot be undone. As noted by Aquino, such a system would go a long way in enhancing the sense of the populace, as it would enable government expenditure to be transparent and verifiable. To him, citizens are entitled to the knowledge of the use of public funds.
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At present, parts of the financial records are using a blockchain platform in the Department of Budget and Management (DBM). BayaniChain helped create a live on-chain budget system that tracks some documents to improve transparency. It is the first of its kind in Asia. However, Aquino’s proposal is more ambitious, as he plans to put the entire national budget on the blockchain.
Paul Soliman, who is the CEO of BayaniChain, agreed on the concept and added that the blockchain technology could also create a sense of accountability because it creates records that cannot be altered. He emphasized that blockchain may not be the panacea to corruption, but it may be a useful mechanism to keep fund misuse down. BayaniChain promotes the objective of augmenting openness, yet demystifies that it is not part and parcel of the endeavour undertaken by Aquino.
Public Access Key to the Success of Blockchain Budget
The proposal has received mixed reactions. The advocates feel that it might transform the transparency of the government and complicate corruption. Technology analyst Maria Santos said blockchain’s public and permanent ledger can let the community see all transactions.
On the other hand, other analysts noted issues with the engineering and expense of installing such an extensive system. A budget officer named Juan Cruz indicated that implementation of this plan would need a lot of investment in training individuals and infrastructural development.
Moreover, the population has little knowledge about blockchain in the Philippines. Aquino accepted that it is necessary to prepare platforms that are user-friendly, including apps or websites, to enable citizens to access and understand budget information conveniently.
In spite of these obstacles, Aquino was optimistic about the potential of the project. He will liaise with technology gurus and government departments to invent the system and hopes to pilot the program in the next two years. If it is successful, the Philippines may be a blockchain-based governance pioneer.
On the whole, the proposal of Aquino is indicative of a significant attempt to become more transparent in terms of government expenditure and accountable. With the help of blockchain technology, the country could establish a new trend in the management of public finances. But the success of such a program will rely on the proper planning, popular backing, and proper education of the masses. The world will be keen on following the Philippines as it seeks to explore this new way of governance.
