28th Parliamentary Intelligence-Security Forum – The Geopolitical Impact of Digital Currencies

Hon. Joey Salceda addressed the participants of the Parliamentary Intelligence-Security Forum, discussing digital currencies and their impact. He explained that while digital currencies will not fundamentally alter the ways of the world, they could weaken systems and institutions of financial control. To mitigate the negative geopolitical impacts, he emphasized the need for better governance over ‘real’ things traded with digital currencies.

He defined digital currency as any fiat currency in digital form and cited vital laws anticipating its rise, such as the Securities Regulation Code and Electronic Commerce Law of 2000. Referencing Tatsuo Tanaka’s 1996 paper, “Possible Economic Consequences of Digital Cash,” he emphasized that geopolitical implications remain relevant.

Rep. Salceda also warned of potential digital currency crises, citing past financial disruptions like Mexican and Asian Financial Crisis. He also outlined possible triggers such as security breaches or a global crackdown. He discussed how digital currencies could be organized through cooperation or competition, with middle powers like the Philippines adapting rather than leading. In closing, he called for global collaboration to set certain minimum standards that ensure no harm to the poor and the defenseless.