‘Philippines ready for new era in digital innovation’

MANILA, Philippines — The Philippines is ready for a better-digitalized financial landscape, given the increased use of digital payments in the country over the last five years, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr.
He said the BSP remains committed to adopt global central banking standards and transition to a digital financial system while promoting price stability, financial stability, and an efficient payments and settlements system in the country.
“Recent global and local events like the COVID-19 pandemic helped shape our perspective as central bankers,” Remolona said.
Over the years, subsequent amendments to Republic Act 7653 or the New Central Bank Act have strengthened the BSP’s capacity to execute its primary goal of maintaining price stability that is conducive to sustainable and inclusive economic growth.
The BSP’s consistent efforts to execute this mandate have guided individuals and businesses in making sound decisions on savings, borrowings, and investing with confidence on the power of the Philippine currency.
Amid the technical nature of its work that requires managing a delicate balance between inflation and growth, Remolona said the BSP also acknowledges its role in helping Filipinos access banking services, increase their financial literacy, and protect themselves from fraud and cybersecurity threats.
“We consider these facets of central banking critical to inclusive and sustainable economic growth – where individuals in far-flung areas in the provinces are offered the same financial services as those living in Metro Manila or in any urbanized city,” he said.
Innovative programs and initiatives undertaken by the BSP include the polymerization of the P1,000 banknotes in April 2022, the Paleng-QR Ph Plus program, the Coin Deposit Machine project, the Check-Protect-Report campaign, the Financial Education Stakeholders Expo, the Open Finance PH Pilot and the Regulatory Sandbox framework.
The BSP has been active in promoting green and sustainable policies in the financial system. By nurturing a regulatory environment conducive to sustainable and inclusive growth, the central bank safeguards the country’s transition into the post-pandemic, digital economy.
“The BSP is a globally renowned institution that is adaptive to new technologies and progressive in its approach to policy. We are considered innovators among central banks in the world. Our flagship programs are proof that we have gone above and beyond the mandate in a bid to be of service to the Filipinos,” Remolona said.
As the BSP’s digitalization efforts progress, Filipinos in Luzon, the Visayas and Mindanao, as well as those working across the globe, can expect sustained economic growth and sustainability, marking a new era of digital transformation for the nation.
The central bank is confident of achieving its twin goals of raising the share of electronic payments to total retail transactions to 50 percent and increase the number of banked Filipino adults to 70 percent before the end of 2023 under its Digital Payments Transformation Roadmap.
According to the 2022 Status of Digital Payments BSP Report, the share in terms of volume of digital payments over total retail payments significantly increased to 42.1 percent from 30.3 percent in 2021.
Likewise, the number of Filipino adults with bank accounts almost doubled to 56 percent in 2021 from 29 percent in 2019.
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