Senator Pushes Blockchain Budget for Trust or Transparency?

The Philippines is exploring the use of blockchain technology to enhance transparency in national budgeting, with Senator Bam Aquino announcing plans to propose a bill that would place the country's budget on a blockchain-based platform. During his speech at the Manila Tech Summit, Aquino emphasized the potential for blockchain to provide real-time tracking of public spending, making every peso spent traceable and verifiable by citizens. The senator noted that while the initiative could face political challenges, its implementation could position the Philippines as the first country to adopt such a system [1].

Aquino’s proposal builds on the existing blockchain infrastructure used by the Department of Budget and Management (DBM), which has already implemented a blockchain-based document validation system using Polygon's Proof-of-Stake network. This system currently records selected financial documents, such as Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs), providing a foundation for a more comprehensive on-chain budget system [2]. The system leverages Prismo, an orchestration layer that manages encryption, validation, and data handling, ensuring the integrity of financial records.

BayaniChain, the local blockchain infrastructure firm responsible for the DBM’s current system, has expressed support for Aquino’s vision. Paul Soliman, co-founder and CEO of BayaniChain, stated that while blockchain is not a complete solution to corruption, it creates immutable records that enhance accountability. He clarified that the firm is not formally involved with the senator but acknowledged the alignment of their goals in promoting transparency [2]. The company’s role involves connecting the DBM’s internal systems to a public blockchain, enabling secure and verifiable transactions.

The senator’s proposal is part of a broader trend of governments worldwide exploring blockchain for public administration. For instance, the U.S. Commerce Secretary Howard Lutnick recently announced that the Department of Commerce will begin publishing economic statistics, starting with GDP figures, on the blockchain. Similarly, Estonia has integrated blockchain into its e-Health system, and Singapore and Australia have tested blockchain for cross-border trade documentation [4]. These developments highlight blockchain’s growing role in enhancing data integrity and transparency in public services.

However, the initiative remains conceptual, as no formal bill has yet been filed to implement a system-wide on-chain budget. While the proposal has generated interest in the public sector and from blockchain stakeholders, its success will depend on legislative support and the ability to integrate the technology into existing governance systems. Analysts note that beyond technological barriers, the challenge will also involve ensuring public understanding and accessibility, particularly for citizens unfamiliar with blockchain technology [5]. If realized, the Philippines could set a global precedent for using decentralized systems to manage public finances, potentially influencing other nations to adopt similar measures for fiscal accountability.

Source:

[1] Philippine senator plans bill putting national budget on blockchain (https://www.theblock.co/post/368556/philippine-senator-plans-bill-putting-national-budget-on-blockchain)

[2] Philippine Senator Suggests Putting National Budget On- (https://decrypt.co/337140/philippine-senator-suggests-putting-national-budget-on-chain)

[3] Senator Pushes Blockchain Budget for Trust or Transparency? (https://www.bitget.site/news/detail/12560604935334)

[4] US Commerce to publish GDP data on blockchain, says ... (https://cointelegraph.com/news/us-economic-data-blockchain-commerce-howard-lutnick)

[5] Philippine Senator Proposes National Budget Tracking on ... (https://coinfomania.com/philippine-senator-proposes-national-budget-tracking-on-blockchain/)