The Department of Information and Communications Technology (DICT) has released a draft circular on data residency for government agencies. It is a good and necessary move, but it needs to go further. The Philippines must make sure that all government data, and any system that handles it, stays within the country and under Philippine law.
This is not a question of technology alone. It is about who truly controls the information that defines our government and our citizens. Our budget records, citizen databases, and national files are as important as our land and seas. Allowing these to be processed or stored abroad weakens our sovereignty and leaves our country exposed to foreign interference.
Why Data Residency Matters
Data residency simply means that government data is stored and processed inside the Philippines, not in foreign data centers. When government information is hosted abroad, it falls under another country’s jurisdiction. That means foreign courts or agencies can demand access to it. The government may lose the ability to protect, correct, or even delete its own records.
Some officials and consultants have suggested using foreign or public blockchains, such as Polygon, for transparency. While that sounds modern, it also means our national data becomes dependent on servers and validators located in other countries. Those systems may be open to anyone across the world and governed by foreign law. For a sovereign nation, that is a serious risk.
Learning from Other Nations
Other countries have already faced this issue.
Estonia, known for its digital government, uses blockchain to secure state records but keeps all its data in national servers. India requires citizen and financial data to stay within the country. Indonesia enforces similar rules through its electronic systems law. These countries show that sovereignty and innovation can go together when data stays within national borders.
What the Philippines Should Do
The DICT circular can be improved through three practical measures:
First, all government data including backups must be stored in Philippine territory. Major providers like Amazon, Microsoft, and Google can already create “sovereign cloud” facilities that operate entirely under local law. The DICT should require this setup for all agencies.
Second, if any blockchain is used by government, it must be operated only by validators and servers located in multiple parts of the Philippines. If we want to use blockchain for integrity or audit purposes, let it be a Philippine chain run by Philippine institutions.
Third, all technology contracts should specify that Philippine law and Philippine courts have authority. Vendors must commit that no data copies or encryption keys will ever leave the country. The National Privacy Commission and Commission on Audit should be able to inspect and verify compliance.
This Is Strength, Not Limitation
Some people may worry that local infrastructure is expensive or less reliable. That thinking is outdated. The Philippines can build its own modern, secure data centers and regional backup facilities. We can partner with local providers and universities to train people to manage them. If we can build roads and bridges, we can build a strong digital backbone too.
Keeping our data inside our borders is not isolationist, it is protective. It ensures that our laws, not foreign powers, decide how government data is used. It gives Filipinos confidence that their personal information and public records are safe and sovereign.
A Call for Digital Independence
The DICT’s draft circular points the right way, but it must be clearer and stricter. Sovereignty is not achieved by words. It is achieved when every server, validator, and database holding government data operates on Philippine soil and follows Philippine law.
Our nation once fought for political independence. Today, we must fight for digital independence. By keeping our data, our systems, and our validation inside the country, we affirm that the Philippines owns not only its territory but also its digital destiny.
That is what true sovereignty means in the modern age.