Bangko Sentral ng Pilipinas
Economy

BSP paves way for shift to ‘cash-lite’ economy

Feb 26, 2021, 7:39 AM
OpinYon News Team

OpinYon News Team

News Reporter

The Bangko Sentral ng Pilipinas (BSP) has created a new sector that will focus on achieving a well-functioning digital payment system for the country.

Central bank creates new sector to promote digital currency

LOOKING to provide a safe and efficient payment system, the Bangko Sentral ng Pilipinas (BSP) has created a new sector that will promote a “well-functioning” digital currency service as the country begins a transition to a “cash-lite” economy.

In a virtual briefing Wednesday, BSP Governor Benjamin Diokno announced the creation of the Payments and Currency Management Sector (PCMS), to be led by Deputy Governor Mamerto Tangonan.

The BSP governor said the creation of PCMS is in line with the central bank’s Digital Payments Transformation Roadmap for 2020-23 that targets to provide an efficient, safe, and efficient payments ecosystem.

The BSP said Tangonan has more than 28 years of experience in digital and traditional financial services, telecommunications, technology, financial inclusion, and consulting services.

Before this stint at the BSP, he led a six-year program funded by the United States Agency for International Development (USAID) for E-PESO Activity, a bilateral initiative aimed to increase electronic payments (e-payments) in the Philippines in a bid to have a more inclusive economic growth.

Tangonan said studies have shown that digital payments help boost economic growth by reducing inequality.

“Cash and digital payments will co-exist but BSP’s goal is towards a cash-lite society,” he added.

Diokno said financial inclusion means having more people becoming part of the formal financial system and more people, especially those belonging to the micro, small and medium enterprises (MSMEs), benefiting from financial products that boost their livelihood. (ONT/with report from PNA)


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