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Bureau of Treasury, PDAX, GCash to Launch GBonds in December

Photo for the Article - Bureau of Treasury, PDAX, GCash to Launch GBonds in December

Government-issued bonds will soon be accessible for retail investors through GCash, as part of the Philippine governmentโ€™s financial inclusion and digitalization initiatives.

Whatโ€™s the significance: The integration makes government bonds more accessible, affordable, and convenient for retail investors, as GCash has more than 83 million users.

Photo for the Article - Bureau of Treasury, PDAX, GCash to Launch GBonds in December

Key Details: The Bureau of the Treasury, in partnership with GCash and PDAX, is set to launch GBonds this month.

  • The Announcement: Finance Secretary Ralph Recto announced this during the 127th anniversary of the Bureau of the Treasury on November 11, 2024.
    • Recto urged GCash, PDAX, and regulators to expedite the process to boost financial inclusion.
  • The Goal: The initiative aims to empower Filipinos to secure their financial future conveniently from their homes.
  • The Exact Date: There is still no official launch date revealed as the initiative needs pending final regulatory approvals.

Key Quote: 

โ€œWe envision a future where investing in government bonds is no longer a luxury but a new normal for Filipinos โ€“ with just a few swipes away and as easy as ordering their favorite food deliveryโ€ฆThis empowers our people to effortlessly secure their future, all from the comfort of their homes.โ€

Ralph Recto, Secretary, Department of Finance

How it Works: Bonds are fixed-interest securities where investors lend money to governments or corporations and earn interest, receiving the principal and accrued interest upon maturity.

  • How are bonds computed: If a person buys a โ‚ฑ10,000 bond with a 6% annual interest rate (APY) and a 12-month maturity, they will earn โ‚ฑ600 in interest, making their total investment โ‚ฑ10,600 after one year.
  • In 2023: Blockchain-tokenized treasury bonds were launched through PDAX, enabling investments as low as โ‚ฑ500 with a 6.2% interest rate.
  • Earlier this year: The Philippines achieved a milestone by raising over $10 billion through Retail Treasury Bonds, surpassing previous records
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Worth reading: Check out this BitPinas article which compares bonds and digital bank savings accounts, highlighting their features for low-risk investors.

This article is published on BitPinas: Bureau of Treasury, PDAX, GCash to Launch GBonds in December


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