Philippines Central Bank Encourages FinTech Companies to Engage with Banks

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo shared during a panel in the Philippine Economic Briefing in London that the country is encouraging fintech companies to engage with banks. He said that this will help in delivering banking services and reducing its costs.

This article is first published by BitPinas on October 1, 2018.

During a panel discussion, Deputy Governor Guinigundo said that the financial regulator is pushing for the use of digital platforms. He said this will enable the banks to reach more people and expand the inclusivity of banking services.

In addition, he stressed that they are encouraging financial technology firms in the country to engage with banks. With this in action, he sees that this will help in improving the delivery of banking services, reduce its cost, and make it more efficient.

“We are encouraging financial technology firms to engage with the banks so that the delivery of banking services will also be improved, reduce cost, make it more efficient, and more people would be able to take advantage of banking services.” – Deputy Governor Diwa Guinigundo, Bangko Sentral ng Pilipinas

Deputy Governor Guinigundo also admitted that the regulators are fully aware of the blockchain industry and its players.

In terms of cryptocurrency, he said that BSP is still cautious about it. Same as the other banks in other jurisdictions who issued an advisory.

“We know the limitations of cryptocurrency in terms of its function. [Cryptocurrency] does not fulfill the basic requirements of a currency so we issued an advisory.” Deputy Governor Diwa Guinigundo, Bangko Sentral ng Pilipinas

Philippine Economic Briefing (PEB) is the first roadshow in London under the administration of Philippine President Rodrigo Duterte. Held on September 25, 2018 at Four Seasons Hotel, Park Lane, London, its theme was “Strengthening Economic Resilience and Spurring Infrastructure Development for Inclusive Growth”. It was attended by 250 participants.

Along with Deputy Governor Diwa Guinigundo were other government officials who also showcased the country’s stable and robust growth. It was led by Finance Secretary Carlos G. Dominguez, Budget Secretary Benjamin E. Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia, Transportation Secretary Arthur P. Tugade, Public Works and Highways Secretary Mark A. Villar, and Bases Conversion and Development Authority President and CEO Vivencio B. Dizon.

In August 2018, BSP formed a separate fintech and blockchain unit, Financial Technology Sub-Sector. According to the BSP Governor Nestor Espenilla Jr., this unit will “conduct effective oversight of FinTech and other innovative alternatives,”

The Philippines’ Securities and Exchange Commission (SEC) is also seeking the BSP to do a “joint cooperative oversight” in releasing the draft rules for virtual currency exchanges. This is because BSP’s current license is similar to a money changer license for changing crypto to fiat and does not include acting as trading platforms.

Sources: BSP

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