the government. the bureau of internal revenue ( bir ) has been the top biller followed by the philippine national police ( pnp ), environmental management bureau, and overseas workers welfare administration ( owwa ). qr ph adoption 3 / 7 bis central bankers'speeches in an effort to encourage ease of use of electronic payments, the bsp also drives to further streamline the digital payments landscape in the country. while customers have long supported the use of the traditional debit and credit card, more recently, quick response ( qr ) for payments has been gaining more attention from end - users. this technology has emerged as the most expedient means of payment since it merely entails code scanning which is faster and easier than the usual procedures associated with the use of payment cards. the bangko sentral required all payment service providers ( psps ) to adopt the national qr code standard developed by the philippine payments management, inc. ( ppmi ), as provided in bsp circular no. 1055, in order to revolutionize the fragmented qr - driven payment solution into an interoperable payment mechanism. adoption of the same eliminates the need for the merchants and customers to maintain several accounts and for the merchants to display numerous qrs. launched in november 2019, the qr ph which serves as the national qr code has provided touchless payment convenience and encouraged the usage of the person - to - person ( p2p ) qr ph through the instapay rail, and now it has exhibited significant increase in volume and value of transactions since its inception and likewise, for the first half of 2020. bsp initiatives test and learn / regulatory sandbox with all these ongoing developments and milestones in fintech and payments, the bsp remains attentive to potential avenues by which we can further respond to the dynamic technology landscape while at the same time, adopting industry best practices. as the bsp is tasked to promote and maintain price and financial stability, the benefits and risks of digitalization are carefully assessed and examined. hence, it has established and maintained a regulatory environment that allows innovations to flourish while ensuring that risks are properly mitigated, through the “ test and learn ” or more commonly known as the “ regulatory sandbox ”. in this environment, innovative financial services are permitted to operate in a live but controlled setting while the bsp takes initiative to fully understand business model ’ s peculiarity and assess the attendant risks. central bank digital currency on

benjamin e diokno : digitization developments and initiatives speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at citibank's perspectives event, manila, 16 september 2020. * * * distinguished leaders and visionaries of citibank, officers from different multinational and top - tier local corporates, fellow speakers, ladies and gentlemen, good afternoon. the bangko sentral ng pilipinas recognizes that the road to digital economy for the philippines is bright and auspicious. given the country ’ s strong macro - economic fundamentals, fascinating advancements in technology, and influx of engaging clients, it is undeniable that we are ready to partake in a digital transformation journey. for one, technological innovations if channeled the right way, can curtail financial inclusion barriers. accordingly, the bsp advocates the promotion of financial products and services that are suitably designed, priced, and tailored to diverse market segments, including the unbanked and underserved markets, through pioneering delivery channels. we continue to encourage digital innovation alongside key mandates of maintaining monetary and financial stability and the efficiency and safety of payments and settlements systems. this digital transformation is made more significant given that this global health crisis has caused a reduction in physical banking touchpoints, compelling clients and industries to traverse and discover financial activities through virtual avenues. nonetheless, the bsp has prepared solutions within its regulatory purview which support the new economy set up and ensure that the pace of digital transformation proceeds hand in hand with caution and adequate risk management. truly, in order to sustain growth of the whole economy and the banking system, we need to ensure that secure, reliable and robust infrastructures and systems are in place to facilitate various economic activities. going back to financial inclusion, it has always been one of the bsp ’ s top advocacies. the harsh r elaity is that majority of filipinos continue to have no formal bank accounts. hence, financial inclusion remains a strategic objective, which must run in parallel with financial stability, integrity and consumer protection objectives. this pursuit, alongside rapidly evolving technologies and changing customer demands, paved the way to a global phenomenon called mobile revolution. one that is greatly evident in our country, as the philippines is expected to reach a 70 % smart phone penetration rate by the end of 2020. however, there are two main barriers that the financial industry must overcome to leverage on