a regulatory environment that allows digital transformations to thrive. at the same time, we are mindful of attendant risks and any unintended consequences that technological innovations may bring, especially when it comes to consumer and data protection. because of this, a deliberate part of our strategy is to further deepen our financial education and consumer protection initiatives. this balanced regulatory approach is anchored on the core principles of risk - based, proportionate and fair regulation ; active multi - stakeholder collaboration ; and, consumer protection. these principles are pragmatically implemented through our flexible “ test and learn ” approach in dealing with increasing digital transformations in the financial system. this provides an opportunity for fintechs to participate in the financial system thru collaborations with banks and other financial industry players to achieve greater scale, within the regulatory environment established by the bsp. in addition, we are likewise coordinating and cooperating with other domestic and foreign regulators for possible information sharing and referral system especially focused on fintech firms. the ultimate objective of our regulatory approach to digital transformation is to be aware of risks and employ mitigating actions as needed, but only in a manner that also allows benefits leveraging on these innovations. in the last three years, the bsp has been preparing the groundwork for an expanded digital finance ecosystem, one marked by diversity of players responding to the varying needs of businesses and individuals, especially those that have been traditionally unserved. we issued rules to open up the electronic payment rails to more players, ( cir. 980 and 1000 ) ; provided guidelines on virtual currency exchanges as an emerging alternative remittance business model ( cir. 942 and 944 ) ; allowed banks to exponentially expand reach by tapping ubiquitous retail outlets as cash agents ( cir. 940 ) ; and provided greater clarity on customer onboarding for low - risk clients who need formal financial services but lack conventional 2 / 4 bis central bankers'speeches identification documentation ( cir. 950 and 1022 ). bsp legislative advocacies bearing fruit while these issuances have helped create an enabling environment for innovations to flourish, bsp recognizes that ushering the country to a new era of digital transformation and inclusive growth requires new regulatory tools. with the commitment and perseverance of my predecessors as well as the support of our lawmakers and the national government, our legislative advocacies have borne fruit with the passage of the landmark laws for the financial system. in october 2018, republic act ( ra )

no. 11127, or the national payment systems act ( npsa ) was signed into law. the npsa is a comprehensive legal framework supporting the twin objectives of maintaining a payment system necessary to control systemic risk and providing an environment conducive to sustainable growth. it fosters a level playing field for all participants under a single overarching legal and regulatory framework. this will bring about greater efficiencies, foster digital innovations and promote “ coopetition ” – a combination for cooperation and competition – in the financial services industry. to cope with all these rapid technological changes, there is clearly a need to make bsp more capable, efficient, agile, stakeholder - oriented and future - ready. we, therefore, cannot overemphasize the critical importance of the amendments to the bsp charter with the signing of ra no. 11211 just last month. the new bsp charter embodies a package of reforms that places central banking in the philippines at the forefront of modern central banking, improves the bsp ’ s corporate viability, and enhances its capacity to craft proactive policies amid rising interlinkages in the financial markets and the broader economy. under our new charter, the bsp shall continue fostering price and financial stability, with a clear view that our efforts are ultimately aimed at enhancing the economic wellbeing of filipinos. bsp is also working closely with the philippine statistics authority and other government agencies on the successful implementation of the philippine identification system, as provided under ra no. 11055 signed by the president in august 2018. philsys aims to provide every filipino a unique and verifiable digital id and is envisioned to be a platform for innovations in consumer service delivery. with philsys, all filipinos can have the tools to meaningfully participate in the gains of an increasingly digitalized economy. we believe that with these regulatory and legislative initiatives, the requisite foundation for digital transformation has been put in place to support industry players called to respond to the needs of filipino consumers. collaborating and innovating with purpose whether you are a market pioneer or a startup, financial service providers must recognize that tapping into the latest technology will not be enough ; greater collaboration and more meaningful partnerships present the best path towards financial inclusion and inclusive growth. strategic partnerships between agile fintechs and experienced financial institutions in the shared financial space will help unlock doors to new, untapped possibilities. greater collaboration is therefore needed to help scale innovative products and solutions