Senator Aims to Make Philippines the World’s First Blockchain Budget Nation

The Philippine government is reportedly considering a major reform in public financial management, with Senator Bam Aquino proposing to record the country's national budget on a blockchain platform. The move, first announced at the Manila Tech Summit, aims to enhance transparency and accountability in public spending by enabling citizens to track government expenditures in real time. While the proposal has not yet been formally submitted, it builds upon the Department of Budget and Management's (DBM) existing blockchain-based system, which currently records select financial documents and is considered the first active blockchain platform for budget management in Asia [3].

Aquino emphasized the significance of blockchain's immutable nature, stating that placing government transactions on a decentralized ledger would ensure that "every single step of the way will be logged and transparent to every single citizen." He acknowledged the boldness of the proposal, noting that "no one is crazy enough to put their transactions on blockchain," but stressed the government’s intent to initiate the process. If implemented, the Philippines could become the first country to adopt such a system on a national scale [3].

The DBM’s existing blockchain system, developed in collaboration with BayaniChain—a local blockchain infrastructure firm—currently uses Polygon’s Proof-of-Stake network as a consensus and transparency layer. This infrastructure supports the online publication and verification of key budget documents, including Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs). A separate orchestration layer, called Prismo, manages data handling, encryption, and validation, ensuring that records are securely stored and accessible for verification [4].

BayaniChain’s CEO, Paul Soliman, reiterated that while blockchain is not a complete solution to corruption, it provides an essential tool for creating "immutable records that ensure accountability from government officials." The company clarified that it is not directly involved in Senator Aquino’s initiative but supports the broader goal of leveraging blockchain for public administration. Soliman stated that the firm's role is to provide the technological infrastructure that connects the DBM’s internal systems to a public blockchain [4].

The proposal aligns with global trends in blockchain adoption for public sector applications. In the United States, Commerce Secretary Howard Lutnick recently announced plans to publish GDP data on the blockchain, aiming to expand its use across federal departments. Other nations, including Estonia, Singapore, and Australia, have also explored blockchain for secure data storage and cross-border administrative services [1]. These developments highlight the growing recognition of blockchain’s potential to enhance transparency and trust in government operations.

Senator Aquino's proposed bill, if approved, could represent a significant shift in how the Philippines approaches budget management and public accountability. However, the success of the initiative will depend on the level of support it receives from lawmakers and government agencies. As the proposal moves forward, stakeholders will be watching to see how it integrates with existing systems and whether it can overcome challenges such as data accuracy, scalability, and public engagement [3].

Source:

[1] US Economic Data to Be Published on Blockchain: Commerce Secretary Howard Lutnick (https://cointelegraph.com/news/us-economic-data-blockchain-commerce-howard-lutnick)

[2] Philippine Senators Propose Recording National Budget on Blockchain (https://www.panewslab.com/en/articles/8232c6f5-a6d8-4baa-a85b-6d1eb94f2fd7)

[3] Philippine Senator Eyes Proposal to Place Government Budget on Blockchain (https://www.theblock.co/post/368556/philippine-senator-plans-bill-putting-national-budget-on-blockchain)

[4] Philippine Senator Suggests Putting National Budget On-Chain (https://decrypt.co/337140/philippine-senator-suggests-putting-national-budget-on-chain?amp=1)