Philippines plans to launch a blockchain-based budgeting system, legal experts warn of risks

ChainCatcher news, the Philippine Senate is currently 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 record the national budget on-chain, aiming to enhance transparency in government spending and curb corruption.

This move comes amid strong public concern over alleged irregularities in infrastructure projects worth about $9.2 billion. However, several legal experts have expressed concerns. Former Philippine Solicitor General Florin Hilbay warned that simply using blockchain technology does not automatically promote transparency or prevent corruption, and may instead reduce it to a “marketing tool.” Technology law expert Russell Geronimo pointed out that the problem does not lie in the lack of an immutable ledger, but rather in weak procurement oversight, auditing, and whistleblower protection mechanisms.

The Philippine Fintech Lawyers Association also cautioned that private entities controlling blockchain infrastructure could in effect privatize public data. They suggested that the government should retain ownership and control of budget data and adopt open-source protocols to prevent vendor lock-in and monopolies.