amando m tetangco, jr : bancnet 25th anniversary speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the bancnet 25th anniversary, makati city, 24 july 2015. * * * i am delighted to be with you tonight to celebrate bancnet ’ s 25th anniversary. silver anniversaries are always important. you have come so far, and the future beckons with exciting opportunities. and so, happy anniversary and congratulations to all the members, officers and staff of bancnet. from the point of view of the bangko sentral ng pilipinas, there are many reasons for you to celebrate. let me cite a million reasons why : • 113 member institutions as of end - 2014 represent an atm cardholder base of over 73 million. by march this year, the number had increased to nearly 78 million cardholders. • the high volume of switched transactions reached almost 500 million in 2014 or an average of 1. 36 million transactions per day. with the on - going integration of megalink into bancnet, you are creating a unified atm switch network in the philippines. finally, this is happening. these are significant milestones indeed but the story is not complete. our eyes are now set on creating a national retail payment system or nrps and bancnet should be part of this grand journey. what is nrps? well, nrps envisions filipinos to have easy access to financial services and have accounts to make payments, and receive or transfer funds to other accounts anytime, anywhere, at a reasonable price from any digital device. efficient retail payments contribute to the stability and efficiency of the financial system and the economy as a whole. studies have shown that shifting from paper based to electronic - based payment system can generate an annual savings up to 1 % of gross domestic product ( gdp ). how can this potential market impact your business? based on country diagnostics conducted by the better than cash alliance ( btca ), of which the philippines is a member, filipinos make about 2. 5 billion payment transactions per month worth us $ 74 billion, but only 1 % are transacted electronically ; 99 % of the transactions are paid either in cash or checks. nrps will allow us to start reversing this ratio. in other words, you have the option to have a bigger slice of this huge

have adverse effects in times of crisis cannot be ruled out. a digital euro should therefore be designed in a way that enables this risk to be strictly controlled, as i will discuss in more detail shortly. impact on the international monetary system the third way in which a digital euro could have an impact on the financial system is at the cross - border level. depending on whether it would be accessible to non - residents and interoperable with non - euro payment systems, a digital euro could also have far - reaching implications for the rest of the world. a digital euro accessible to non - residents could make the single currency more attractive as a safe means of payment for retail transactions across borders. it could help tackle inefficiencies in cross - border payment infrastructures and make it easier to transfer remittances. but if a digital euro were not designed in a way that prevented it from being used as a form of investment, these benefits would come with the risk of amplifying international shocks. the fact that a digital euro would be very liquid may lead to foreign investors using it disproportionately and rebalancing much more forcefully into or away from it in response to shocks. indeed, recent research suggests that, in the presence of a cbdc, shocks could result in greater exchange rate fluctuations and have a stronger effect on foreign financial conditions. this, in turn, could force foreign central banks to become more responsive to international spillovers. https : / / www. ecb. europa. eu / press / key / date / 2021 / html / ecb. sp210210 ~ a1665d3188. en. html 7 / 14 10 / 02 / 2021 evolution or revolution? the impact of a digital euro on the financial system conversely, these dynamics mean that the absence of a digital euro could make europe more vulnerable to international developments : widespread adoption of digital currencies by foreign central banks could make the european economy and financial system more sensitive to shocks from abroad. design and policy options to obtain the benefits of a digital euro – such as the ability to guarantee privacy in digital payments, financial inclusion and universal access – it would need to be carefully designed. potential design features were reviewed in the eurosystem ’ s report [ 24 ] and will be assessed in depth by the task force that is studying the launch of a digital euro. only when all issues have been addressed will we make a decision about whether or not to issue a digital euro