SEC Commissioner Kelvin Lee: Enabling the Philippines to keep up with changing times

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The Philippines is building up to be a key player in the blockchain race, with plans laid out to bolster the adoption of the emerging technology and the government launching a whole-of-nation approach geared toward the country’s rapid digitalization.

The priority of the Philippine government has always been to provide the needs and address the changing demands of Filipinos across different demographics, especially at a time when emerging technologies are becoming critical tools for economic growth and promoting a better society.

The Securities and Exchange Commission (SEC) is only among several state-backed agencies voicing support for the central administration’s digitalization drive, with blockchain technology at the forefront.

“The Commission is very open to innovation, in particular, blockchain technology,” SEC Commissioner Kelvin Lester Lee told CoinGeek Backstage. “We are aware of its advantages; we are aware of how well it works.”

Lee added that the SEC is fully aware of blockchain’s multiple use cases and has been exploring their application within the government under a new project whose details remain under wrap while emphasizing the importance of adopting newer technologies.

He noted that many people carry the notion that the public sector isn’t striving for innovation because most of the local industry’s operations remain largely traditional.

“I’d like to make it clear that’s not the case. There are some very innovative, smart people in government,” Lee pointed out, adding that he, along with other government officials, has been continuously exploring emerging technologies to improve operations and services to Filipinos.

The SEC official noted that having an open mind and welcoming innovation is necessary, or the country will risk being left behind.

While these are considered a formula to help the Philippines achieve digitalization through blockchain technology, Lee stressed that it is also vital that the country select the right blockchain to build on.

“Credibility, number one; track record, number two; and number three, of course, obviously, we have to make sure they’re not scams,” Lee said, enumerating the characteristics the Philippines are looking for when choosing the blockchain it will utilize in its digitalization drive.

“Bottomline, we need to make sure they’re credible, that they can work well with us, and of course, this shouldn’t be forgotten—their solution is effective,” he added.

The adoption of emerging technologies also needs a framework to prevent misuse, with Lee saying that the SEC has been drafting regulations to oversee the local digital asset space, which could include rules governing digital currencies and exchanges, as well as online lending applications.

The building blocks of digitalization

The Philippines is only among several developing nations exploring blockchain technology and its use cases.

While a handful of government agencies support this massive initiative, the Philippines has also sought the aid of private institutions, including nChain, in dealing with emerging technologies.

In a separate interview with CoinGeek Backstage reporter Claire Celdran, Business Development Lead at nChain Stephanie Tower, said the global tech firm has a lot in store for the Philippines, from helping the national government gradually streamline services and processes to educating Filipinos on blockchain technology.

“We work with different government units, academe, and even private sectors, and immerse them with blockchain technology through training and workshops, roundtable discussions, and other opportunities where people, not only the government but anyone, can actually learn about the use cases and applications [of blockchain technology],” Tower said, explaining what nChain’s Blockchain Immersion Program is all about.

While blockchain is often associated with Bitcoin, the technology’s use cases go beyond digital currencies and could solve real-world problems.

In terms of educating the masses on blockchain, Tower said nChain is working alongside the Ateneo De Manila University to give opportunities to young Filipinos through their blockchain course and the Department of Science and Technology (DOST) to intensify the country’s research and development and craft an effective framework to support the roadmap on innovation.

“We hope that with our partnership with the university, with DOST, and our researchers and our scientists at nChain, we can come out with something significant and valuable that will be a good guide and that would push forward every innovation that can be powered by blockchain technology here in the Philippines,” said Tower.

While nChain has a proven track record in the field of blockchain, like many other companies starting a project, it encountered numerous challenges here in the Philippines.

Recalling nChain’s ongoing collaboration with the provincial government of Bataan, Tower said they had a hard time collecting data on a real-time basis.

“Recognizing that, we would really want blockchain technology to be able to help…soften how difficult gathering data is, how long it takes to get accurate data,” she noted, adding that the implementation process is also a challenge, stressing that “things like this take time.”

“This is for a large population; they really have to review and understand the legal implications of it, how’s it gonna be impactful, what are the risks. It is given, but it is quite challenging if you wanna, of course, push innovation as fast as you can,” explained Tower.

Watch: Blockchain brings social impact to the Philippines