09-01-2025 
|
Getting your Trinity Audio player ready...
|
The Department of Budget and Management (DBM) of the Philippines has rolled out a blockchain-based system to secure and verify official budget documents, a move aimed at reducing fraud and strengthening public trust in government financial data.
According to the implementation brief obtained by CoinGeek, the initiative covers the Action Document Releasing System (ADRS), which generates Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs). Once vulnerable to tampering when shared externally, these documents are now tokenized on blockchain platforms to make them immutable and verifiable in real time.
The project, according to DBM, aims to allow internal and external users, including courts, partner agencies, and the general public, to confirm document authenticity within minutes. “This project ensures secure and tamper-proof verification of SAROs and NCAs through blockchain, QR codes, and web application access,” the agency said in its implementation brief.
How the system works
Under the setup, every SARO and NCA issued starting in 2024 is embedded with a QR code. By scanning the code or entering the document number on a dedicated web application, users can view tokenized information stored on the Polygon blockchain for public access.
Private data is handled separately through Microsoft (NASDAQ: MSFT) login credentials and stored on Azure Confidential Ledger to balance transparency with security. DBM emphasized that this dual-layer design allows for public verification of documents while safeguarding sensitive information.
Immutable records are created when documents are uploaded, ensuring that the official blockchain record cannot be changed even if physical copies are altered. “Blockchain addresses the authenticity issue by providing independent verification that is not reliant on internal DBM systems alone,” the agency noted.
Timeline and current status
The blockchain project was launched in October 2024 and is set to run until October 2025. By July 30, 2025, the system achieved business go-live status following several stages: requirements gathering, system development, API integration with ADRS, testing, and a series of vulnerability assessments.
As of August, DBM has begun rolling out user training and capacity-building sessions. The system handover phase is expected to take place between September and October. DBM listed several milestones that had been completed earlier this year, including penetration testing, user acceptance trials, and live demonstrations with stakeholders.
Partner technology and integration
The platform relies on the Lumen Blockchain-as-a-Service component developed by BayaniChain in collaboration with ExakIT Services. The Prismo protocol serves as the orchestration layer, determining which details are made public and which remain private.
“These are the core documents that determine how public funds are released and used. And now, every Filipino can access and verify them with full transparency, powered by blockchain,” Gelo Wong, co-founder of BayaniChain Ventures, said in a Facebook post.
SAROs authorize agencies to commit funds for specific purposes, while NCAs represent the actual release of cash from government banks. Both documents are now viewable online, dating back to 2024, with access available to departments such as Finance, Tourism, Public Works and Highways, Trade and Industry, and several universities and commissions.Benefits for government and public
DBM highlighted that the new system reduces the time for document verification from days to minutes, improves efficiency across agencies, and minimizes fraud risks. “By tokenizing official documents, the system enhances inter-agency coordination and transparency while increasing public confidence in financial data,” the agency stated.
The web application was also designed with usability, offering error prompts, tooltips, and validation guidance to help users verify documents accurately.
According to DBM, one of the broader goals is integrating blockchain technology into public administration as part of its “invisible government” vision, where digital tools secure processes while remaining unobtrusive for citizens.
Future procurement and phase 2 plans
Beyond the current implementation, DBM has begun preparations for Phase 2, which involves procuring a multi-year blockchain solution. The procurement documents, including justifications for using specific blockchain platforms such as Prismo and Polygon, have already been presented to the Bids and Awards Committee (BAC).
The BAC requested further details, including usage projections, a list of documents to be tokenized over the next three years, and cost justifications. DBM has committed to providing supporting documentation before Phase 2 can move forward.
Procurement of the second phase is expected to be finalized after the current system has been fully handed over and operational.
First of its kind in Philippine governance
Officials noted that this marks the first time in Philippine history that a government agency has applied blockchain for budget transparency. With budget papers now anchored to tamper-proof digital records, DBM and its partners see the project as a foundation for broader blockchain applications in governance.
“Blockchain minimizes risks of tampering and makes it easier for citizens and partner institutions to trust government-issued documents,” DBM said.
By embedding immutable records into a public blockchain, the project aligns with earlier efforts announced in 2018, when proposals were first raised to use blockchain in procurement. With the ADRS now backed by decentralized technology, DBM aims to build a more transparent and secure financial ecosystem for government operations.
Watch: Inside the Philippine’s blockchain revolution—what you need to know
Recommended for you
