The Philippines has launched a blockchain initiative that allows budget documents, including allotment orders and cash releases, to have cryptographic fingerprints stored on the Polygon platform. This initiative aims to enhance transparency and protect against forgery.
Use of Blockchain in Budget Documents
The Department of Budget and Management of the Philippines confirmed that key budget papers will now carry cryptographic fingerprints. This allows anyone to scan a QR code or enter a reference number to verify a document’s authenticity, with the blockchain acting as a secure ledger.
Infrastructure and System Launch
Local firm Bayanichain developed the infrastructure, which went live on July 30. The launch coincided with a brief disruption on Polygon’s Heimdall layer, but core operations and the government rollout were unaffected.
Advantages and Challenges of the New System
By embedding state files onto a decentralized platform, Manila joins a growing number of governments experimenting with blockchain to enhance transparency. However, the initiative also highlights a key challenge: reliance on networks outside direct state control necessitates guarantees of stability and redundancy for such critical systems.
The Philippines’ initiative to use blockchain in its budgeting system marks a step toward enhancing transparency and fraud protection, but requires careful management of the underlying infrastructure.
