by a digital philsys id and supported by a next - generation payment and settlement system that facilitates the real - time processing of financial transactions. the realization of these objectives depends mainly on three critical pillars. first of these pillars is the development of digital payment streams. second is the establishment of necessary digital finance structures that will facilitate interoperability in the digital payments ecosystem. the third critical pillar is the implementation of digital governance standards and regulation of digital products and services to safeguard the integrity and privacy of consumer data. we know that for digital payments to flourish in our society, we need to have reliable and stable internet connectivity. digital connectivity is a critical enabler and a necessity in the new economy. that is why the financial inclusion steering committee ( fisc ), of which the bsp is a member, endorsed the open access to data transmission bill as priority legislation to the legislativeexecutive development advisory council. the bill aims to address internet infrastructure gaps by bringing in more players to the broadband sector. in december 2020, the fisc also endorsed to the office of the president a proposed executive order that aims to liberalize access to satellite technology for broadband services and fast - track the expansion of internet infrastructure to improve connectivity in underserved communities and rural areas as well as accelerate financial inclusion. all these fit in nicely in our 2020 – 2023 strategy of bringing the bsp closer to the people — to become the central bank that understands their needs and helps them achieve their aspirations in life. and one of the ways we intend to do this is by advocating the digital transformation of financial services in the country. through digitalization, we help create opportunities for people to improve their lives and participate in the economic and financial system. through digital payments, we also promote financial inclusion. digital payments help consumers engage in easier and safer economic activities. on a wider scale, it also helps reduce poverty and hunger ; promote good health and well - being ; ensure quality education, decent work, and gender equality ; develop sustainable communities, and a lot more. 4 / 5 bis central bankers'speeches at the end of the day, it is not simply about what we innovate but why we do it and to whom we are doing it for. the current crisis has given us an opportunity to think out of the box and be bold, as we work to protect the interests of the people we serve. it showed us what to focus on, as a bsp closer to its people. isang bangko sentral

, and to financial institutions ’ capital requirements and pricing criteria, which will make them more resilient to future shocks. accordingly, these policies will help mitigate financial stability risks over time. when it comes to housing activity and prices, the measures will weigh on demand, especially for more expensive houses. but demographic demand remains robust, job creation and income growth have been strong in the greater vancouver and toronto areas, and housing supply constraints continue to bind. there is a box in the fsr that describes the macroprudential measures that have been taken and how they might be expected to affect housing fundamentals. the important takeaway is that one cannot judge the effectiveness of these policies simply by observing whether house prices continue to rise. this is because the measures are aimed at mitigating risks to households and to the financial system, not at house prices per se. the effects of these policies will be greatest in vancouver and toronto, because that is where the majority of high loan - toincome mortgages are being granted. in this context, governing council noted that price increases have begun to slow noticeably in vancouver, but it is too early to determine the new trend. it is noteworthy that market activity began to slow before the imposition of the special tax on sales of homes to non - residents, which 1 / 2 bis central bankers'speeches suggests that other factors may have begun to interrupt the cycle of extrapolative price expectations. however, the situation remains highly uncertain, and we have seen no signs of a similar moderation in the toronto area. again, we must emphasize that a moderating housing market, as we have seen in calgary, for example, may ease financial stability concerns on one front, but leave the level of household debt at a very high level. governing council ’ s discussions of these risks were also influenced by the backup in global bond yields since the us election. canada ’ s bond yields have responded, as is typically the case, albeit in less than a one - for - one fashion. this has led to some increases in canadian mortgage rates. we will monitor these developments carefully in the months ahead. as we made clear in our recent interest rate announcement, we will continue to follow an independent monetary policy in canada, one aimed at returning inflation to our 2 per cent target. finally, there has been considerable discussion in financial markets about possible shortages of bond market liquidity. many have pointed to regulatory changes as contributing to this. at the same time, markets functioned exceptionally