The new preferred payment method of Filipinos is lowering the demand for physical currencies, which will reduce the cost of producing new banknotes and coins, the Bangko Sentral ng Pilipinas (BSP) said.
This comes as, since the onset of the COVID-19 pandemic, Filipinos have become heavily acquainted with digital payments through e-wallets, and debit and credit cards as the lockdown of the whole country was in full swing.
BSP governor Benjamin Diokno said that low denomination currencies are expected to taper off.
“The use of banknotes and coins is expected to taper off over time, particularly the low denomination currencies,” the BSP chief said during a virtual presser Monday.
Diokno added that digital payment has been a catalyst for economic growth.
“digital payment has been a catalyst for accelerating financial inclusion and is spurring economic growth,” Diokno added.
The central bank chief also added that the digitalization of the country grew further in the last 12 months, and is conforming to the BSP’s goal of transforming at least half of retail payments to digital form by 2023.
Diokno also stressed the importance of micro, small and medium enterprises (MSMEs) to have access to digital payments, which will be their “first step to digital financial inclusion,” he said.
MSMEs will also be of great help to the Philippines’ recovery as 99 percent of businesses in the country fall under the MSME category. (GFB)