Diokno: Digital Finance, Critical For Economic Growth
Finance Secretary Benjamin Diokno stressed the importance of building a robust digital finance infrastructure in enabling broad-based economic growth.
Photo Insert: Secretary Diokno said that the country is more prepared to participate in the new global economy and widen the space for investments with the government’s game-changing reforms.
“Digitalization paves the way for greater financial inclusion among our people. Increased participation in the formal financial system is critical in deepening our financial and capital markets, growing consumer confidence, and extending products and services to previously underserved markets,” said Secretary Diokno in a keynote speech for a daily newspaper’s webinar on fintech, financial inclusion, and micro, small and medium enterprises (MSMEs).
Diokno said that the Marcos administration’s eight-point socioeconomic agenda underscores a commitment to create a policy environment that is conducive for technological innovations, and would strengthen support for the digital economy. Such an environment will support the development of new industries, enhance public service delivery, and create employment and investment opportunities.
He also acknowledged how the pandemic accelerated most of the developments in the digital space.
“At the height of mobility restrictions, enterprises explored new digital approaches to keep their heads above water. Specifically, the rapid adoption of digital payments has facilitated the growth of e-commerce and propelled the shift to a more cash-lite economy,” Diokno explained.
He added that stronger consumer preference for digital payments will help MSMEs tap into new markets, expand their distribution channels, and streamline their transaction systems.
To expand public access to financial products and services and achieve e-governance, Diokno said that the government will accelerate the rollout of the Philippine Identification System.
He likewise pointed out that the Bangko Sentral ng Pilipinas (BSP) is in a better position to address cybersecurity concerns and enhance consumer safety within the digital financial system now that the Financial Products and Services Consumer Protection Act has been approved into law.
“These policy efforts are aligned with the BSP’s goals to digitalize half of all retail payments and onboard 70 percent of Filipino adults to the formal financial system by 2023,” said Secretary Diokno.
Secretary Diokno said that the country is more prepared to participate in the new global economy and widen the space for investments with the government’s game-changing reforms, such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and other recently enacted economic liberalization laws.
He added that the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are fast-tracking the full digitalization of the government’s revenue systems to increase tax effort and promote ease of business.
“I ask you to continue working with us in further harnessing the wide constellation of digital business solutions in order to build a more sustainable, inclusive, and digitally-enabled future,” said Secretary Diokno.