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Phl adopts ‘game-changing’ digital economy

This is a victory aligned with the Ease of Doing Business Act, BSP’s Digital Transformation Roadmap, and National Strategy for Financial Inclusion

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Photo by Christiann Koepke on Unsplash

The Philippines’ digital economy will permeate all facets of society with the Duterte administration’s goal to further deepen financial inclusion by creating a cashless ecosystem with the signing of Executive Order (EO) 170 to adopt Digital Payments for Government Disbursements and Collections.

The emergence of technological innovations and widespread Internet use make the shift to digital payments more accessible and affordable. In addition to the proliferation of nascent digital solutions and the administration’s push to drive digital payment, the digital shift provides tremendous opportunities for the Philippines’ cashless society.

“Digital collection of payments will expedite transactions, generate savings for the government, and reduce the risk of graft and corruption,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said on his social media account.

The issuance of EO 170 by President Rodrigo Duterte is part of the more comprehensive Digital Payments Transformation Roadmap developed by the BSP to shift digital payments to at least 50 percent by 2023 and provide financial access to the vast informal economy.

According to the BSP, digital payments are no longer the tech-savvy and financially literate domain. They could unlock the potential for micro, small and medium enterprises and small-and medium-enterprises while opening doors for entrepreneurs to expand their markets in previously unimaginable ways.

“This is a victory aligned with the Ease of Doing Business Act, BSP’s Digital Transformation Roadmap, and National Strategy for Financial Inclusion,” Diokno added.

Earlier, the governor also said that adopting a digital scheme for disbursement ensures the safety and convenience of an inclusive financial system.

The BSP also has commended the Department of the Interior and Local Government for promoting the settlement of DILG and the local government’s payables through digital disbursements.

Moreover, Diokno added that “financial inclusion enables unbanked Filipinos to access affordable financial products and services, such as opening transaction accounts, obtaining loans, and investing in and purchasing products safely and conveniently.”

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