Benjamin E Diokno: Philippine identification system - paving the
way towards financial inclusion
Speech by Mr Benjamin E Diokno, Governor of Bangko Sentral ng Pilipinas (BSP, the central
bank of the Philippines), at the Roundtable Discussion on "Championing and Accelerating Good
Digital ID for All" during the World Bank Group/IMF Annual Meetings, Washington DC, 17 October
2019.
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Good morning! It is a privilege and honor to be speaking before a chosen group of eminent
dignitaries on a very important and growing topic across the globe.
The innovation, development and advancement of technologies has ushered us to a new digital
world, and reshaped mindsets, perspectives and decisions of government officials and
regulators. Technologies have greatly influenced the way we go about our normal ways and they
continue to do so as we speak.
The journey for a national ID for the Philippines started 30 years ago. But it failed to pass one
Congress after another. Finally last year, the Philippine ID System Act was past last year. And I
am happy to announce that on 07 October 2019, we had a milestone as the Central Bank of the
Philippines signed the memorandum of agreement (MOA) with the Philippine Statistics Authority
that starts the implementation of the "Philippine Identification System (PhilSys) Act.
The law, which promulgates the policy of the State to establish a single national identification
system, mandates the issuance of a unique, non-transferable card to all citizens or resident
aliens registered under the PhilSys. The law is beneficial for all Filipinos as it provides "a means
of simplifying public and private transaction" through a reliable and nationally-accepted proof of
identity. Having this proof of identity has far-reaching benefits, particularly in promoting financial
inclusion.
With the "Philippine ID", unbanked Filipinos will have a proof of identity which is a key requirement
in opening a bank account. It will be easier for unbanked Filipinos to open bank accounts and
avail of financial services-a win for our financial inclusion agenda. This will enable more of our
marginalized countrymen to enjoy gains from and participate more actively in the country's
growing economy.
As such, the Central Bank of the Philippines is glad to take part in this game-changing reform as
we join the other countries in providing a foundational platform for the delivery of services. The
Central Bank of the Philippines, as the national security printer for the Philippine currency, has
the capability and integrity to produce high quality and secured materials. Under the MOA, the
BSP shall produce one hundred sixteen million pieces of blank cards for the Phil ID for three
years. We will print the ID at less than $1 a piece - 60 cents to be exact. We will provide the
needed equipment and space for the embedding of personal information onto the blank cards,
which will be done by the Philippine Statistics Authority.
The card issuance will start in April 2020.
I'll stop here and I look forward to a meaningful conversation regarding the National ID System for
all.
Thank you.