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A new legislative effort is underway in the Philippines to establish a comprehensive set of rules for cryptocurrencies and blockchain technology. House Bill No. 4792, officially filed by Congressman Edgar “Egay” Erice of Caloocan’s 2nd District, proposes the creation of a central governing body: the National Council on Digital Assets and Tokenized Investments (NCDATI).
The proposed law, formally titled “An Act to Create the National Council on Digital Assets and Tokenized Investments (NCDATI) for the Purpose of Establishing a National Framework for Real-World Asset Tokenization, Responsible Cryptocurrency Adoption, Stablecoin Utilization, Development of Local and Foreign Exchanges, Promotion of Decentralized Finance, and Retail Acceptance of Crypto Payments, Providing for Citizen Participation, Investor Protections, and for Other Purposes,” seeks to provide a clear framework for the growing digital asset space. This includes managing real-world asset tokenization, encouraging the responsible use of cryptocurrencies, setting guidelines for stablecoins, fostering the growth of digital exchanges (both local and international), advancing decentralized finance (DeFi), and enabling the use of crypto for everyday purchases. The bill also emphasizes citizen involvement and investor protection.
Congressman Erice explained the rationale behind the bill, stating, “We are living in an era where financial transactions are increasingly digital, happening instantly across various devices and borders.” He emphasized the speed, convenience, and broader access to financial services that digitalization offers, particularly for previously unbanked Filipinos.
However, he cautioned that these advancements also bring potential hazards, noting that “Cryptocurrencies offer opportunities for innovation and financial freedom, but without proper oversight, they can also lead to instability.”
Protecting People from Potential Financial Risks
Source: Egay Erice’s Facebook Page
The explanatory section of the bill highlights the potential dangers that Filipinos face within the rapidly changing digital finance landscape.
“We have heard accounts of diligent Filipinos losing their savings to fraudulent schemes or experiencing significant losses due to the unpredictable nature of unregulated markets. These stories represent real people – parents, students – whose lives are directly affected.”
Erice emphasized that the legislation is not intended to stifle innovation but to prioritize the safety and security of citizens.
“Regulation should not hinder progress but, instead, protect the public. It should ensure that the future of finance benefits everyone, not just a select few. It aims to create a system where trust prevails over fear, and where innovation leads to improvement rather than exploitation.”
The proposed framework includes guidelines for the responsible adoption of cryptocurrencies, safeguards for investors, and provisions for the optional use of stablecoins and crypto for payments.
According to the bill, “This legislation aims to broaden consumer choice, allowing payments in stablecoins or crypto at various points of sale, including online platforms and government services, with all transactions recorded with their peso equivalents. Crucially, the adoption is voluntary, giving Filipinos the freedom to choose without forcing crypto use.”
Blockchain’s Potential for Economic Growth
The bill also emphasizes the economic potential of positioning the Philippines as a hub for blockchain innovation.
“By establishing the Philippines as a blockchain innovation hub, this bill can assist in securing a portion of Southeast Asia’s projected $1 trillion digital economy by 2030.”
The bill points out that blockchain’s applications extend far beyond cryptocurrencies.
“Blockchain technology has a diverse range of applications beyond just cryptocurrency. It provides fundamental solutions for supply chain management, digital identity verification, government transparency initiatives, and international trade. This framework is designed to attract foreign investment and generate numerous high-skilled jobs in technology, finance, and regulatory compliance.”
Ensuring Citizen Participation in Policy Decisions
Congressman Erice also stressed the bill’s focus on inclusivity, noting that it requires direct public involvement, unlike many past financial laws.
“Unlike conventional financial legislation often crafted by a select group, this bill mandates representation from ordinary citizens, Overseas Filipino Workers (OFWs), and civil society organizations within the National Council on Digital Assets and Tokenized Investments (NCDATI). This will allow policies to be formulated with input from ordinary Filipinos, rather than behind closed doors.”
This provision aims to promote transparent governance, prevent undue influence on policy, and ensure accountability in regulating digital assets.
Toward a Standardized National System
House Bill 4792 identifies several key areas for the proposed framework, including real-world asset (RWA) tokenization, responsible cryptocurrency adoption through the development of oversight rules and protective measures, stablecoin utilization with clear regulations for peso-backed and foreign stablecoins, the growth of both local and international digital exchanges, the promotion of decentralized finance (DeFi) within a regulated environment, the acceptance of crypto payments in everyday transactions, citizen participation in policymaking, and investor protection.
The bill emphasizes that these elements are designed to establish a complete structure that fosters innovation while ensuring public trust.
Building Confidence in the Digital Future
“By implementing smart regulations, we can confidently embrace the digital future, creating a Philippines where technology empowers every citizen and protects everyone in the new digital age of finance,” Erice stated.
House Bill 4792 is currently awaiting its first reading in the House of Representatives. Erice summarized the bill’s core intent, emphasizing that regulation is about building trust and empowering individuals: “With balanced regulation and strong oversight, we can unlock the benefits of digital money while safeguarding the integrity of our financial system.”
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