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The Department of Information and Communications Technology (DICT) and blockchain firm Polygon have both confirmed to BitPinas that discussions for a potential multi-million dollar grant for the DICT to pilot a national budget blockchain system are “ongoing.”
In separate statements by their representatives, both parties clarified the status of the collaboration, correcting earlier reports and social media posts that a deal may have been finalized. The proposed grant, valued at $5 million to $10 million (according to DICT Secretary Henry Aguda), would be used to implement the project at no cost to the government, the organizations said.
To clarify, the system will not hold the money itself. Instead, it will record every budget transaction (such as a fund release) as a permanent, verifiable entry on the blockchain for public tracking.
More details and clarifications below:
DICT, Polygon: ‘Discussions are Ongoing’
Both the DICT (through Assistant Secretary Migui Planas) and Polygon (through Chyi Yan Hshieh, Head of Business Development for APAC) emphasized that the project is not a one-time grant but a planned, long-term collaboration.
DICT Assistant Secretary Migui Planas said:
“Discussions are still ongoing. The proposed is not a one-time grant, rather a phased-approach with clear goals. This ensures accountability on both ends.”
Polygon’s Chyi Yan Hshieh corroborated this, describing the collaboration:
“This is a long-term effort to build trust in governance and set a new standard for how public finance can work in the digital age.”
How the Collaboration Began
According to both statements, the initiative was proactively proposed by Polygon.
Asec. Planas told BitPinas:
“Polygon recognized the Philippines’ growing interest in blockchain technology applications, particularly in light of recent discussions around innovative solutions for public infrastructure challenges, and the budget.”
Hshieh elaborated on this, noting their previous work in the country:
“[Polygon’s] previous participation in a pilot blockchain project with DBM (Department of Budget and Management) in collaboration with our local partner, Bayanichain has provided an opportunity for us to interact more closely with the government in identifying value-adding blockchain use cases.”
The Goal: A Transparent, Multi-Chain Budget
The primary goal of the initiative is to enhance transparency in public spending, both organizations confirmed.
“The goal is to make the national budget visible, verifiable, and accessible on-chain so that citizens, institutions, and oversight bodies can see how funds are allocated and used in real time,” said Hshieh.
Is there Vendor Lock In?
The DICT also clarified the technical approach, addressing potential “vendor lock-in” concerns. Asec. Planas noted that Polygon “advocates for a multi-chain approach, which emphasizes interoperability between different blockchain networks, a framework that aligns well with building transparent, scalable and flexible public infrastructure solutions.”
This was also mentioned by DICT Secretary Henry Aguda in his speech at the 8th CXO Technology Summit that was first reported by tech publication Newsbytes.
Aguda, according to Newsbytes, also said the plan is for multiple agencies to maintain their own blockchain that will later be interconnected under a unified platform.
Parallel Government Initiatives
The DICT’s executive-led initiative runs parallel to a legislative proposal in the Senate, the “Blockchain the Budget Bill” (SBN 1330), which is authored by Senator Bam Aquino. Both efforts share the goal of using blockchain technology to increase transparency and combat corruption in public spending.
The proposed grant-funded pilot is a significant development, especially after DICT Secretary Henry Aguda previously estimated in a Senate hearing that a full blockchain implementation could cost “a couple of hundred million to maybe a billion or so,” depending on its scope.
This article is published on BitPinas: Exclusive: DICT, Polygon Confirm Talks for $5M-$10M Grant to Put Budget on Blockchain
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