Philippine Officials Eye Blockchain to Reinvent Budget Transparency Amid Public Trust Push

The Philippine government is weighing the use of blockchain technology to strengthen transparency in the national budget process, with senior officials arguing that distributed ledgers could make every peso traceable and publicly verifiable.

Department of Information and Communications Technology (DICT) Secretary Henry Aguda said he believes blockchain could be a transformative tool for accountability in public spending. Speaking before the Malacañang Press Corps, Aguda emphasized that the country already has sufficient technical expertise to develop and implement the system.

“Our country is skilled to do this,” he said, adding that his team’s current task is to build a working prototype to demonstrate the concept to lawmakers. “One of my assignments is to provide a minimum viable product and show it to the Senate and Congress before the actual execution.”

The proposal comes as legislators from both chambers are advancing bills to institutionalize blockchain-backed transparency. In September, Senator Bam Aquino introduced the Philippine National Budget Blockchain Act, while similar measures were filed in the House of Representatives. The initiative would require government agencies—from the executive to local councils—to upload budget allocations, procurement data, and disbursements to a blockchain ledger, allowing citizens to track spending in real time.

During a Senate Committee on Science and Technology hearing, Aquino described the initiative as a step toward “transparent, honest, and secure” fiscal governance. He argued that blockchain could prevent manipulation of public records and enable citizens to audit projects themselves. The bill also borrows elements from the Full Disclosure Act, which compels agencies to publish contracts and expenditure reports online.

DICT Secretary Aguda reaffirmed his department’s full support for the proposal, noting that it aligns with the agency’s broader goal of using technology to enhance government efficiency. He revealed that the DICT is already testing blockchain-based stablecoin systems to trace peso-denominated transactions within banks. Aguda added that he would request President Ferdinand Marcos Jr. to certify the measure as urgent.

Not everyone shares the optimism. Former Solicitor General and legal scholar Florin Hilbay has questioned the practicality of using blockchain for governance. In a public statement, he cautioned that such a system could replicate centralized control under the guise of decentralization, arguing that “simpler digital frameworks may achieve transparency without the high cost and complexity of blockchain infrastructure.” Hilbay also raised concerns about security risks and projected expenses of around ₱500 million ($8.6 million) for initial deployment.

Despite the criticism, Aguda remains confident that private sector partners will help finance the prototype, stressing that “no public funds will be used.” Two private donors have already expressed willingness to contribute, pending formal vetting and governance checks.

As the Philippines explores how emerging technologies can restore faith in government institutions, the debate around blockchain transparency captures a broader question: whether innovation alone can fix systemic accountability—or if the answer lies in the will to use existing tools responsibly.