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Note: Critical Context and Follow-Up:
Since this press briefing, significant developments and criticisms regarding the project have emerged. Readers are strongly advised to review the following coverage for a complete picture:
Following the announcement of the blockchain-integrated 2026 National Budget, Department of Information and Communications Technology (DICT) officials fielded questions from reporters during a press conference in Malacañang.
Secretary Henry Aguda and Undersecretary David Almirol addressed inquiries regarding technical partners, security features, and legislative backing. The following is a transcript of the exchange; note that responses originally given in a mix of English and Filipino have been translated into English for clarity.
1. Cost and Operations
Q: How much budget did the DICT spend on this, and who is operating it?
Sec. Aguda: “Actually, that is a good question. First, nothing was spent. We received a grant from the private sector… The blockchain implemented is through a third party and is going to go to a public chain.”
“The grant didn’t go to DICT. We partnered with a company called BayaniChain and they were the ones who did work for us. The amount… I don’t know, maybe it’s substantial. Maybe a few million also.”
“Our agreement with them is once it’s done at no cost to the government, we can migrate it to another chain.”
2. The “Consortium” Structure
Q: How does the system work technically?
Usec. Almirol: “We are joining forces to form what is called a consortium blockchain. This means we own the nodes… DBM (Department of Budget and Management), DICT, and COA (Commission on Audit) will build nodes that we own.”
“It’s like having three transparency servers… If DBM inputs data, DICT sees it immediately. COA sees it too. If a project is awarded to Contractor A, all three servers see it. If it says ‘30% done,’ that is visible. So, there will be no ghost projects here.”
3. Security and ‘Hack-Free’ Claims
Q: Is the system hack-proof?
Sec. Aguda: “Blockchain was created by cybersecurity specialists. You can see the hash code but you cannot reverse engineer the content.”
“To date, the chain itself… I don’t know of any that has been hacked. Usually, it is the surrounding systems. It is a cybersecurity-first system. It was designed to be secure from the start.”
Reporter Follow-up: “So sir, does it mean it is hack-free”?
Sec. Aguda: Yes, so far,
Reporter: 100%?
Sec. Aguda: 101%.
Note: Sec. Aguda’s claim that blockchain is 101% hack-free drew reactions from the cybersecurity community. (Read more: [Op-Ed] Ann Cuisia: Blockchain Is Not Transparency, and “101% Hack-Free” Is Not Security and Industry Reactions: Experts Flag Security and Transparency Concerns)
4. Projected Government Savings
Q: Is there an estimate of how much the government will save?
Usec. Almirol: “Just imagine the paper that will be eliminated… redundant IT systems will be gone. Just based on single entry [and] eliminating redundant IT systems… maybe north of several billion will be saved.”
5. The CADENA Bill and Future Roadmap
Q: When is the full rollout?
Sec. Aguda: “We needed to launch it quickly, so we launched it to a public chain. But if you remember the CADENA Bill… Cadena is going to come out maybe in a few months, around February or March. In Cadena, there will be a specific allocated budget.”
“We expect that the budget to ‘blockchain everything’ to fulfill the mandate of Cadena will be included there. So Usec. Dave is already planning the execution… By 2027, that is when the pure blockchain from budget to disbursement to allocation will happen.”
This article is published on BitPinas: Q and A: DICT Defends Blockchain Budget System Amid Security and Transparency Questions
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