In the past two months, two legislative proposals emerged with a shared mission: modernize how the Philippine government manages and discloses its national budget. Senate Bill No. 1330 championed the use of blockchain to usher in a new era of transparency. Just weeks later, Senate Bill No. 1506, now known as the CADENA Act, followed as its legislative evolution. While both bills aim to secure public trust through digital means, the CADENA Act reflects a significant pivot in strategy: from a blockchain-centric mandate to a tech-neutral, institutionally governed infrastructure.

Key Philosophical Shift: From “Blockchain Budget System” to “Citizen Access Portal”

Senate Bill No. 1330 proposed a bold framework centered around a blockchain-based budget system. It laid out terms like validator nodes, digital public assets, and smart contracts as foundational components. Every transaction would be publicly recorded on a blockchain ledger, promising immutability and traceability.

By contrast, SBN-1506 avoids naming blockchain entirely. Instead, it emphasizes the creation of CADENA—a digital portal for citizen access and disclosure of expenditures. This portal is required to be tamper-resistant, interoperable, and built on structured digital formats. The shift signals a maturity in policymaking: opting for flexibility and inclusivity in tech choices over rigid mandates.

Governance and Oversight: Introducing the NBTAC

A core enhancement introduced by the CADENA Act is the creation of the National Budget Transparency and Accountability Council (NBTAC). As defined in Section 7, this council will oversee the system's development, conduct technology reviews at least every three years, and recommend updates to ensure compliance with evolving standards.

The NBTAC serves as a governance backbone, ensuring that whatever technologies are used—whether blockchain, distributed systems, or others—remain aligned with privacy protections, national security, and the public interest. This oversight layer was missing in SBN-1330 and marks a crucial advancement.

Cryptographic Guarantees, Without the Buzzwords

Even though blockchain is not explicitly defined in SBN-1506, CADENA is still built on cryptographic principles. Section 3 of the bill defines both "Cryptographic" and "Digital Signature," highlighting their roles in verifying data integrity and ensuring non-repudiation.

This leaves the door open for technologies like blockchain to be used, but also acknowledges that other cryptographic methods could fulfill the same functions. In contrast, SBN-133, in paper, may have lacked by defining blockchain as its sole key technology; potentially limiting future adaptability.

CADENA is not designed to operate in a silo. SBN-1506 mandates integration with existing and future platforms, including the Integrated Financial Management Information System (IFMIS), Budget and Treasury Management System (BTMS), PhilGEPS, and even broader platforms like the eGov PH Portal and eGov Super App.

This interoperability focus ensures that budget transparency becomes a seamless part of digital governance. SBN-1330 envisioned a standalone blockchain system—technically ambitious, but potentially difficult to integrate with government workflows.

Section 7 of the CADENA Act allows existing systems to operate in parallel during a transition period, as specified by the NBTAC. This avoids disruption and supports gradual adoption. Furthermore, CADENA mandates a review of technologies every three years to ensure relevance.

SBN-1330, by contrast, implied a full and immediate shift to a blockchain-based infrastructure without provisions for gradual rollout or future tech review. CADENA addresses this oversight with a more implementation-aware approach.

Transparency in Practice: Citizen Access, Tiered Security

SBN-1506 ensures that CADENA will offer real-time public access to budget data in structured formats. It adds functionality for downloading datasets and includes tiered-access protections for sensitive information.

Crucially, it also mandates real-time public feedback channels, audit trails accessible to COA and accredited civil organizations, and verifiable logging of data discrepancies. These were either absent or loosely defined in SBN-1330.

SBN-1330 leaned decisively into the promise blockchain technology by zooming in on its decentralized, and crypto-native features. Whereas, SBN-1506 reframes the problem around institutional trust and citizen access. It positions CADENA within the broader national digital infrastructure. A Senate press release confirms CADENA as a legislative substitute for SBN-1330, illustrating how the intent of reform lives on in a more policy-ready package.

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