Blockchain and the Philippines: Government Use of Technology

In 2025, countries around the world are addressing issues related to cryptocurrency regulation. And while some are just beginning to recognize crypto as a financial instrument, the Philippines is already actively using it within the country.

How blockchain is used in public administration

Blockchain is a distributed ledger technology that allows data to be recorded in such a way that it is protected from tampering and accessible for independent verification. In the field of public administration, it is seen as a tool for increasing transparency, public trust, and control over the spending of funds.

This technology is already being used to record government contracts, monitor budget expenditures, issue digital documents and certificates, and implement electronic voting. Its main advantage is that records cannot be changed retroactively, which eliminates the possibility of hidden manipulation and increases the accountability of officials and other individuals.

However, the implementation of blockchain still faces many challenges: the need to adapt outdated IT systems, consider privacy issues, resolve legal aspects, and ensure the scalability of solutions.

The Philippine experience: regulating public works

The Philippines was one of the first countries to implement blockchain in public finance management at the national department level. The new Integrity Chain system is used by the Department of Public Works and Highways and records every contract and stage of infrastructure project implementation.

Data comes directly from the department’s internal systems to avoid manual entry and potential errors. The Prismo layer (blockchain level) is used to process information. We discussed blockchain levels and layers in more detail in our blog. Transparency is ensured by the Polygon network, which allows data to be stored in an immutable form and verified by independent validators.

Initially, the project is focused on infrastructure, but in the future, it is planned to extend it to all government agencies and cover the country’s annual budget. The launch of the system coincided with mass protests in Manila, where more than 130,000 people demanded an investigation into abuses in the implementation of road projects. In the country, the introduction of blockchain was a response to public demand and a step towards increasing trust in the authorities.

At the same time, the country’s government faces technical difficulties with integration, the need to train employees, and the creation of a legal framework that will ensure that blockchain records are recognized as legally significant.

Blockchain to fight corruption

Corruption has traditionally been one of the most difficult problems in public administration.

It undermines public trust in the government, reduces the efficiency of budget spending, and slows economic development. For decades, the fight against corruption has boiled down to strengthening controls, creating anti-corruption commissions, and introducing stricter laws. However, in the era of digitalization, a technology that can change the very system of governance is coming to the fore: blockchain.

The main advantage of blockchain is its immutability. All transactions and records entered into the distributed ledger remain there forever and cannot be corrected without the consent of the majority of network participants. This means that an official or contractor cannot rewrite the history of expenses, forge documents, or hide traces of financial fraud. Any such attempt to change the data will be immediately visible.

Transparency is equally important. If government contracts, tenders, and expenditures are recorded in the blockchain, they become available for real-time verification. Citizens, journalists, independent auditors, and international organizations can see exactly how budget funds are being spent. As a result, the process turns into a kind of public audit, where each transaction is subject to verification not only by government agencies but also by society.

Blockchain also reduces the risk of corruption through decentralized management. In traditional systems, data is stored centrally, which gives officials the opportunity to manipulate it. In blockchain, however, information is distributed among many nodes, and control over the system cannot belong to a single entity. Thus, even if some of the system’s participants want to make changes, this will be impossible without the consensus of the majority.

Technology limitations

Nevertheless, it is important to understand that the technology itself does not solve the problem of the “human factor.”

If falsified data is entered into the blockchain, the system will simply record the falsehood in an immutable form. That is why it is important that the process of entering information be accompanied by strict verification, independent audits, and public oversight. Blockchain should not work in isolation, but in conjunction with the legal system, civil initiatives, and anti-corruption agencies.

The use of blockchain in the fight against corruption has already been confirmed in real-life cases. In a number of countries (Georgia, Colombia, Singapore), it is used to monitor public procurement, maintain land registries, distribute social benefits, and control construction contracts. Each such implementation demonstrates the same pattern: the more open data is recorded in a distributed ledger, the less room there is for abuse.

Who regulates blockchain and cryptocurrency

Regulating blockchain and cryptocurrencies, along with their use, is one of the most complex issues in the modern economy. These technologies emerged as decentralized and independent of the state, but with the growing popularity of digital assets, it became clear that without regulation, their use could lead to financial abuse, fraud, and money laundering. Therefore, today, different countries are developing their own models of supervision, which combine financial control, tax administration, and the protection of user interests.

In most cases, central banks and financial supervisory authorities are the main regulators. They determine the rules for the operation of crypto exchanges, licensing conditions, and requirements for conducting transactions.

US regulation

In the US, for example, several agencies are involved in regulating cryptocurrency projects:

• The Securities and Exchange Commission (SEC) considers many tokens to be securities and requires them to be registered under the same rules as stocks or bonds.
• The Commodity Futures Trading Commission (CFTC) oversees cryptocurrency derivatives and derivatives trading.
• The Department of the Treasury, through its FinCEN division, is responsible for enforcing anti-money laundering and counter-terrorism financing rules.

Regulation in Europe and Asia

The European Union has a unified initiative called MiCA (Markets in Crypto-Assets Regulation), which aims to establish common rules for all member countries. It regulates the issuance of tokens, the activities of wallet providers and exchanges, and sets requirements for disclosure and consumer protection.

Some countries have opted for strict restrictions. For example, China has completely banned cryptocurrency transactions and mining, but is actively developing its own state digital yuan.

As for Chinese blockchain technologies (XCH, CFX, NEO), they are now actively used in the crypto sphere, despite being banned in China itself. At the same time, blockchain technology is actively used in the public sector for data control and accounting.

In contrast, Switzerland and Singapore have become a kind of cryptocurrency hub. They have established transparent but flexible rules for businesses and investors, which has attracted many projects and companies.

Multi-level approach

Regulation is not limited to financial aspects. The tax service also plays an important role here, determining how income from cryptocurrencies is taxed — as investment income, capital gains, or ordinary income.

Significant attention is also paid to personal data protection laws. In countries where the GDPR (General Data Protection Regulation) applies, regulators require blockchain projects to take into account privacy rules and the right to delete information, which in itself is a challenge for immutable registries.

Currently, the regulation of blockchain and cryptocurrencies is based on the intersection of several areas. Financial authorities control exchanges and tokens, tax authorities monitor the transparency of income, anti-money laundering agencies require customer identification, and digital security laws shape data protection rules. There is no universal model yet, and each country is developing its own approach — from a complete ban to the creation of a favorable ecosystem for the development of technology.

FAQ

How reliable is data protection in a public blockchain?

Protection is provided by cryptography and a consensus mechanism that makes it virtually impossible to change data, but vulnerabilities can arise at the software or integration level.

Can the state hide information entered into the blockchain?

If the data is recorded in a public network, it cannot be hidden, but the state can control what exactly enters the system.

How can records be given legal force?

This is only possible if appropriate laws are passed and blockchain records are recognized as admissible in courts and official procedures.

What to do if there is an error in the data?

It is impossible to correct an entry that has already been made, but it is possible to add a new one with a correction, while the history of changes will be fully preserved.

How expensive is it to implement blockchain in the government?

The cost can be high, as it requires infrastructure, integration, and employee training, but in the long run, the costs can be offset by reducing corruption schemes and increasing management efficiency.