A lawmaker has filed a bill creating electronic money as a medium of exchange for use on the Internet and all other electronic and non-electronic means of communications.
Pangasinan representative Kimi S. Cojuangco, author of House Bill 4914, said there is an urgent need to enact the proposed “E-Peso Act of 2014” since there is no official medium of exchange or money for the Internet.
“What exists is a patchwork of methods using traditional credit systems, which act in place of money on the Internet. The E-peso is the electronic equivalent to the paper peso,” Cojuangco said.
Cojuangco said the E-peso would be a legal tender and legal payment for debt, taxes, goods, and services transacted through the Internet.
Under the bill, the E-peso will be recognized as the electronic legal tender and will be available in all banks branches operating the country.
Cojuangco said the amount on circulation of the E-peso would be limited to P1 billion in the initial two years.
The Bangko Sentral ng Pilipinas (BSP) shall explore and study the technology of “bitcoin and post bitcoin cryptocurrencies” to expand the knowledge base, which it will use in deciding what technology to use in E-peso, the bill said.
The BSP will also choose a system that uses peer-to-peer processing of the log chain and shall exert its utmost to leverage existing hardware being used by the other leading cryptocurrencies such as bitcoin, according to the bill.
The proposed legislation mandates BSP to require all bank branches to dedicate at least one computer with adequate technical specification to serve as a local peer.
An initial amount equivalent to one percent of the total amount of Philippine currency in circulation will be minted by the BSP within one year from the enactment of the proposed act.