[Webcast Recap] DICT Usec. Almirol on PH Gov’t Blockchain: ‘No Single Vendor,’ Calls for Open Collaboration

The Philippines is currently on track to become the first country to fully integrate blockchain technology into its national budget process.

Following DICT Secretary Henry Aguda’s confirmation that a fully on-chain national budget will roll out starting with the 2026 General Appropriations Act, the push for financial transparency has gained massive momentum. This initiative aligns with the Senate-approved CADENA Act (authored by Sen. Bam Aquino), which mandates the use of emerging technologies to secure public expenditure data.

To shed light on the executive department’s integration plans, the BitPinas Webcast recently hosted DICT Undersecretary for E-Government, David L. Almirol Jr.

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Usec. Almirol: From Freelance Programming to Multisys to Public Service

Almirol, who described himself as coming “from nothing,” spent over a decade as a freelance programmer before building Multisys Technologies Corporation, which was eventually acquired by the MVP Group. Having found success in the private sector, he views his current government role as a way to give back.

“I didn’t have any plan to join the government before. But when I met the President, I was inspired by his belief that technology can be used as a tool to curb corruption and save taxpayers’ money.”

“It was quite painful. I had to divest and sell the company. But I think once in a lifetime we’re able to do something not only for us but for the next generations to come.”

David L. Almirol Jr., Undersecretary for E-Government, DICT

The Strategy: Transparency over Crypto

Almirol shared that the foundation of the government’s strategy was built during various international forums and workshops in tech hubs like Singapore, South Korea, and the U.K. The consensus among global tech leaders was clear: a government blockchain should focus entirely on transparency and data immutability, not cryptocurrency.

Furthermore, he stressed that a national system cannot rely solely on a private or a public chain.

“The single source of truth comes from the government, not from the public. But it should not be a standalone public blockchain only. We discussed and came to a consensus that government blockchains should implement a hybrid blockchain—a combination of both consortium and public blockchain.”

David L. Almirol Jr., Undersecretary for E-Government, DICT

The eGov Chain Success

The DICT already has a working proof-of-concept. In mid-2024, the department introduced eGOVchain to protect 91 million digital national IDs from identity theft and data alteration.

These on-chain IDs are currently utilized for eKYC (electronic Know Your Customer) processes by major platforms like GCash, Maya, and Shopee, as well as government agencies like PhilHealth and the LTO. According to Almirol, the nodes allow citizens to apply for clearances in minutes without repeatedly submitting biometrics.

“We proved that blockchain integration is effective because aside from alteration protection, it also simplifies things.”

“To put simply: Because the nodes are established, citizens can apply for clearances or licenses in minutes without re-submitting their biometrics or signatures.”

David L. Almirol Jr., Undersecretary for E-Government, DICT (translated in English)

The Warning: Don’t ‘Blockchain Everything’

“We must be practical—we shouldn’t ‘blockchain everything’ just for the hype.

I want to warn against improper implementation. A real government blockchain requires the agency that captures the data to host the node directly.”

David L. Almirol Jr., Undersecretary for E-Government, DICT (translated in English)

For Almirol, blockchain is “too expensive” for simple tasks, specifically document authentication, where agencies can just use e-signatures.

He also added that the agency that captured it should be the owner of the data to be minted in a node. This is to ensure that data came from a single source of truth, which is the goal of a government blockchain.

“If you just copy-pasted data from a database and carried it to another node you don’t own, you are violating the very essence of blockchain. It is just basically an NFT—you just authenticated a document, but you lost the single source of truth.”

David L. Almirol Jr., Undersecretary for E-Government, DICT

Almirol then explained that the Philippines should not be pressured into creating its own model of a blockchain and can make other blockchains and standards a model. If this happens, he said he is confident that the country will really implement a “real blockchain.”

“It would be embarrassing to boast about a national blockchain, only for the international IT community to evaluate it and realize it isn’t a true blockchain at all.”

David L. Almirol Jr., Undersecretary for E-Government, DICT (translated in English)

Architecture: One Chain, Multiple Agency Nodes

To ensure it meets international IT standards, Almirol outlined the DICT’s technical blueprint:

• The government will utilize a single, open-source blockchain network rather than multiple fragmented chains.
• The initial network will consist of three primary nodes hosted by the DICT, the Department of Budget and Management (DBM), and the Commission on Audit (COA).
• Over time, other government agencies will be added as “data contributors,” hosting their own mirrored nodes directly on the chain.

The Public’s Role:

While confidential data will remain on the private side of the hybrid chain, non-confidential budget data will be pushed to the public side. Almirol envisions a future where private citizens and organizations can plug into the public blockchain to build tracking dashboards or even use AI to generate reports flagging overpriced projects.

“The public will have authorization and privilege. Public players can comment and criticize.”

“We cannot promise that the government blockchain will be 100% anti-corruption, but we can use this as our tool for transparency; contractors that are not doing their job will be called out.”

David L. Almirol Jr., Undersecretary for E-Government, DICT (translated in English)

Defending the ‘100% Hack-Free’ Claim

Almirol also addressed the recent industry backlash regarding Sec. Aguda’s statement that a blockchain budget would be “100% hack-free.”

While acknowledging that no system is technically impervious to breaches, Almirol defended the underlying sentiment: the security comes from the transparency itself.

“What will you hack if the public data is already open to all? If the budget and the list of projects are already open to the public, there is no secret data to hack or steal. It will surely be 100% hack-free because the public data will already be transparent.”

David L. Almirol Jr., Undersecretary for E-Government, DICT

‘Magsama-sama Tayo’: A Call to Local Developers

Addressing suspicions that the national blockchain initiative is being tailor-made for a specific vendor, Almirol firmly stated that no single company should build the government’s blockchain.

Noting that the initial budget for the initiative is a modest ₱60 million, the DICT’s strategy is to pool resources and invite the entire local blockchain community to collaborate as one rather than individually.

“I hope we can do it all together. At the end of the day, we only have one goal, which is for the government to be transparent. I know the public suspects that this initiative is for one vendor only, but no, we want to combine all the blockchain players.”

David L. Almirol Jr., Undersecretary for E-Government, DICT

Next Steps

Almirol revealed that his team is scheduled to meet with Sen. Bam Aquino in April to further discuss the CADENA Act. Prior to that meeting, the DICT plans host an online open forum specifically for the local IT and blockchain community to voice their suggestions and concerns without restriction.

“Please wait for the final schedule of the open forum. Anyone can join and there will be no restrictions. You can comment and suggest.”

David L. Almirol Jr., Undersecretary for E-Government, DICT (translated in English)

This article is published on BitPinas: DICT Usec David Almirol to Address Public on Gov’t Blockchain Initiative on BitPinas Webcast

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