The Philippines plans to implement a blockchain budgeting system, legal experts warn of risks

ChainCatcher news, according to Decrypt, the Philippine Senate is reviewing Bill No. 1330, which was introduced by Senator Paolo Benigno "Bam" Aquino IV at the end of August. The bill plans to allocate approximately $8.6 million to put the national budget records on the blockchain, aiming to enhance government spending transparency and curb corruption.

The backdrop of this move is the public's strong concern over alleged irregularities in approximately $9.2 billion infrastructure projects. However, several legal experts have expressed concerns about this. Former Philippine Attorney General Florin Hilbay warned that merely using blockchain technology does not automatically promote transparency or prevent corruption, and may instead simplify it to a "marketing tool." Technology law expert Russell Geronimo pointed out that the issue lies not in the lack of an immutable ledger, but in the weak mechanisms for procurement oversight, auditing, and whistleblower protection.

The Philippine Fintech Lawyers Association cautioned that private entities controlling blockchain infrastructure could lead to the de facto privatization of public data, recommending that the government retain ownership and control over budget data and adopt open-source protocols to prevent vendor lock-in and monopolies.