Cebu City to roll out cashless digital payment system

Local

PAYING local taxes and other fees in Cebu City may soon go fully digital.

The Cebu City Government has formalized its push toward cashless transactions through a newly signed agreement that will pave the way for a blockchain-based public payment system.

The initiative is part of the city’s broader push to modernize government services and reduce reliance on cash-based methods.

Mayor Raymond Alvin Garcia announced the development during a press conference on Monday, April 7, saying the shift is a step in aligning the city’s financial systems with technological advancements seen globally.

“This is a very novel and innovative way to improve our financial system. It brings Cebu City into the future by using technology and new norms in how transactions are conducted,” he said.

The signing ceremony on Monday was attended by Garcia and Jaeyoung Kim, the chief executive officer of C PASS Inc.

Under the signed Memorandum of Agreement (MOA), the city will implement a digital payment system that allows residents to settle government fees, such as real property and business taxes, via a secure and accessible online platform.

The system uses blockchain and stablecoin technology to ensure secure, real-time transactions.

The digital platform, which is expected to begin pilot operations soon, will be integrated into the city government’s existing services and will eventually expand citywide.

Residents will be able to access the system through a city-developed mobile application or website, with options for using third-party collecting agents for added convenience.

“This is part of our digitalization thrust and our end goal of having cashless transactions in Cebu City…We’re moving in that direction. Even abroad, you see signs accepting cryptocurrency payments. We’re exploring those possibilities so we can adopt more advanced and efficient ways of transacting,” he added.

The agreement builds on efforts initiated in 2021 under then-Mayor Edgardo Labella, who signed a Memorandum of Understanding with the same technology partner to conduct a feasibility study on the use of a local stablecoin, C Peso, for public transactions.

Labella explained the need for easy payment options, especially for low-income citizens and overseas workers, to pay remotely.

The coin was designed to keep its value stable, regardless of currency changes, and could be used for taxes, government credits, and remittances.

Meanwhile, the signed MOA formalizes technical and policy cooperation between the city and its fintech partner, enabling the use of application programming interfaces to connect digital wallets and payment services directly to government systems.

Garcia said the digital payment system reflects the city’s commitment to improving public service delivery while preparing for a more tech-driven future.

The system is expected to undergo pilot implementation in the coming weeks, with full rollout scheduled once operational testing and user feedback have been completed.(TGP)