April 02, 2021
THE Bangko Sentral ng Pilipinas (BSP) and the Philippine Digital Asset Exchange (PDAX) are supporting the creation of a crypto-and-fintech sandbox that intends to spur innovation and technological advancement in this space. The move is also in response to the growing public interest in alternative investment platforms such as cryptocurrency, notably due to the clear shift from traditional to digital financial services.
During the recent virtual forum “The Philippine Financial Sector: Policy Perspectives and Trends,” which was held by the European Chamber of Commerce in the Philippines (ECCP) and the Fintech Philippines Association (FPA), Nichel Gaba, founder and chief executive officer of PDAX, one of the country’s largest and pioneering cryptocurrency exchanges, explained the importance of building what he called a regulatory sandbox for the digital asset space: “In a regulatory framework, a startup or an entity can test an idea rolling out a product to the market but within the parameters prescribed by a regulator. This framework or sandbox environment ensures that innovative initiatives flourish, while ensuring consumer protection, data privacy and cybersecurity, and that all such technology readily complies with applicable laws and regulations. The private sector and regulator can create an ecosystem for these initiatives.”
He also welcomed collaboration with the BSP in developing and launching initiatives that can increase public participation in the fintech and digital asset spaces while protecting their welfare. “The BSP is one of the global leaders in this space, and we are honored to work with them into nurturing fintech advancements that can help our public make worthy investments, build their income and savings, and plan for a secure future.”
BSP Gov. Benjamin Diokno acknowledged that nascent financial technologies and the legal framework that supports it have to be cultivated in order to support the Philippine economy which has remained resilient despite the pandemic, and is expected to experience 6.5 to 7.5 percent growth by the end of the year. The banking sector itself remains robust with its industry assets also expected to grow by 6.1 percent year on year.
Source: The Manila Times