A milestone for transparency and accountability in Philippine local governance
Baguio City is making history as the first local government unit (LGU) in the Philippines to adopt blockchain technology for governance. In partnership with BayaniChain, the city has launched GoodGovChain, a digital platform designed to secure public records, ensure accountability, and set new standards for transparent governance.
This pilot project is not just a win for Baguio—it represents a significant step toward modernizing government systems nationwide, aligning with Senator Bam Aquino’s proposed “Blockchain the Budget” bill.
Blockchain for Trust in Governance
For decades, citizens have called for greater transparency in government budgets, procurement, and infrastructure projects. GoodGovChain directly addresses this need by enabling LGUs to record data on a secure blockchain—a tamper-proof digital ledger where entries are time-stamped, auditable, and verifiable.
BayaniChain CEO Paul Soliman explains, “GoodGovChain is the blueprint for verifiable governance—replicable, auditable, and tamper-evident by default. Baguio City sets the benchmark in our advocacy for improved accountability across the Philippines and Southeast Asia.”
By putting records on blockchain, government transactions gain a new level of credibility, giving citizens confidence that the information they access is accurate and untampered.
The Impact: Efficiency, Security, and Cost Savings
Unlike traditional systems that rely heavily on paper, printing, and physical storage, GoodGovChain runs on a hybrid public-private blockchain hosted in the cloud. While this entails operating costs, the benefits outweigh the expense through:
- Lower printing and courier costs
- Reduced need for physical storage
- Faster retrieval of documents
- Shorter audit cycles
Importantly, GoodGovChain does not replace existing records or finance systems. Instead, it adds a digital seal to every approved document, allowing anyone to verify whether a PDF or printed copy matches the original.
The platform also supports sustainability goals by leveraging Polygon’s proof-of-stake (PoS) network, a far more energy-efficient system compared to older proof-of-work blockchains.
The Vision: From Local to National Transparency
Baguio City Mayor Benjamin “Benjie” Magalong emphasized the city’s commitment to open governance. “One of the basic principles of good governance is transparency, and blockchain will allow us to be transparent, especially in financial transactions and infrastructure projects. What is very important here is security—and the only way we’ll truly achieve open data is by ensuring all records are placed on blockchain before publishing.”
The pilot project builds on similar efforts by the Department of Budget and Management (DBM), which already secures Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs) using blockchain. This system was cited in Senator Aquino’s bill, which envisions blockchain as a national standard for budget transparency.
With Baguio as the first mover, GoodGovChain could become a model for other LGUs and agencies, paving the way for a more accountable government across the country.
Key Takeaways for Leaders and Entrepreneurs
- Transparency builds trust. Blockchain provides a verifiable way to open government data without fear of tampering.
- Efficiency equals savings. Digitized, blockchain-sealed records streamline auditing and cut operational costs.
- Innovation sets benchmarks. By piloting blockchain governance, Baguio City positions itself as a leader in smart, accountable governance.
Looking Ahead: A Call for Replicable Governance
The success of GoodGovChain in Baguio could trigger a ripple effect across the Philippines. As more cities, municipalities, and national agencies adopt blockchain, citizens can look forward to greater trust in government processes, reduced corruption risks, and more efficient delivery of public services.
This is more than a pilot project—it is a glimpse into the future of transparent digital governance in the Philippines.