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Silliman University College of Law Dean and Former Solicitor General Florin Hilbay has questioned the need to use blockchain for documents involving the national budget, saying the technology may add unnecessary complexity and cost without guaranteeing improved transparency.
Is There a Need to Put the Budget on a Blockchain?
In an October 3, 2025, post, Hilbay expressed that there is really no need to “put the budget on a blockchain”, explaining that the term “blockchain” has been used more as a marketing label than a genuine technological solution.
“The word ‘blockchain’ is not a technology; it is a marketing term. It is not a general-purpose device like the steam engine, which can be used to power different machines. It’s just a metaphor, a fancy word for a database that can function as a ledger.”
Florin Hilbay, Dean, College of Law, Silliman University
Hilbay argued that much of the cryptocurrency industry offers little real-world value, saying, “Out of more than twenty thousand existing cryptocurrencies, apart from bitcoin and stablecoins, few have any real-world use.”
For context, the former Solicitor General cited Human Rights Foundation Chief Strategy Officer Alex Gladstein, who recently wrote that “crypto is, broadly speaking, a giant scam.”
Hilbay said this perspective reflects why many Bitcoin advocates regard terms such as “crypto,” “altcoins,” “blockchain,” and “crypto-trading” as warning signs commonly associated with affinity scams and financial grifting.
Currently, there are already 11 blockchain-related bills in the 20th Congress addressing digital assets, government transparency, and budget accountability. As of writing, nine of these bills are filed in the House of Representatives and two are in the Senate.
Not All Blockchains Are The Same
Hilbay explained that not all blockchains function in the same way, citing Bitcoin’s system, referred to as a “timechain,” as an example of a unique design built for decentralization and security.
He noted that Bitcoin’s consensus mechanism, known as “proof of work,” relies on immense computational energy comparable to the power consumption of Argentina, the Netherlands, and Sweden combined. This energy requirement, he said, enables the network’s resistance to censorship and manipulation, even from nation-states.
In contrast, Hilbay said the “blockchain” model proposed under Senate Bill No. 1330, or the “Blockchain the Budget” measure, differs greatly in design and purpose.
“Remove the jargon, and what you have is a highly centralized database of government data that will be housed in a few servers controlled by future government contractors. The use of ‘smart contracts’ and ‘validator nodes’ will add complexity and technical vulnerabilities that are likely bound to disempower ordinary citizens.”
Florin Hilbay, Dean of the College of Law at Silliman University
He also noted that the proposal would entail a significant cost, with ₱500 million allotted as its initial budget.
“Given the current controversies about the budget, we must laud Senator Bam Aquino for his efforts in genuinely finding ways to address the issue. Senate Bill 1330 is just a proposal and still has a long way to go. New information or a different perspective can influence the Senate and the public’s views.”
Florin Hilbay, Dean, College of Law, Silliman University
Blockchain and Trust
In a separate post on October 5, 2025, Hilbay discussed the broader concept of trust in relation to blockchain technology, encouraging the public to study its intellectual foundations beyond technical explanations.
He said understanding blockchain requires exploring its “technical, philosophical, political, economic, and legal aspects,” as these provide the necessary context for grasping the underlying issues the technology seeks to address.
The Silliman College of Law Dean also explained that modern society relies heavily on intermediaries such as governments, universities, and media institutions, entities that act as gatekeepers of information and must be trusted by citizens.
According to Hilbay, emerging technologies like blockchain aim to rebalance power by reducing dependence on such intermediaries through decentralization.
“The promise of technology is to re-balance this power structure through decentralization by providing individuals with tools that minimize reliance on trusted intermediaries… The most important arena where this technology is being used is in the oldest social network of all—the monetary system, the foundation of law and economics, the architecture that makes organized society possible.”
Florin Hilbay, Dean, College of Law, Silliman University
Alternative Measures
Hilbay then proposed alternative measures that he said would be simpler, more transparent, and less costly than implementing a blockchain-based budget system.
Instead of pursuing a “Blockchain the Budget” law, he suggested creating a well-designed “National Budget in Action” website that would give the public easy access to all relevant government documents.
He also recommended establishing redundancy measures to ensure transparency and integrity, such as maintaining parallel budget-tracking websites managed by non-governmental organizations and citizen groups, supported by both government and private sector funding.
Additionally, Hilbay urged the creation of a system that grants investigative journalists and independent researchers full access to government data, with incentives or rewards for uncovering corruption.
He said such initiatives could be carried out without the need for new legislation, as Congress and the Department of Budget and Management could implement a public-access-by-default framework even without a Freedom of Information law.
“This type of framework will promote transparency and accountability in a simpler and inexpensive way. More important, it will encourage citizen participation and make the work of journalists less challenging. Power to the people. Do not trust. Verify.”
Florin Hilbay, Dean, College of Law, Silliman University
This article is published on BitPinas: Former SolGen Florin Hilbay: Blockchain Budget Proposal Adds Complexity Without Transparency
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