BSP promotes innovation for monetary policy, consumer protection 

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. cited the need to ensure sustainable and inclusive use of technological innovations to better serve the public, according to a report by Philippine News Agency.

In his speech during the BSP’s 32nd anniversary celebration, the central bank chief identified several areas where the BSP takes advantage of these innovations, saying digitalization is everywhere.

He said there is a need to be more discerning as artificial intelligence (AI) “is impossible to ignore.”

“The growing conversation around AI is still evolving and so are the expectations,” he said, pointing out that the issue is not whether to use it or not but instead how it is being used “to empower rather than to displace.”

In the case of the BSP, Remolona said generative AI is now being utilized on monetary policy “to extract insights from non-traditional, unstructured high-frequency data.”

He said the use of the latest technological innovations in Supervisory Technology (SupTech) and Regulatory Technology (RegTech) is helping regulators streamline reporting and assess risks faster.

He said digital financial transactions have exceeded the BSP’s target for it to account for 50 percent of total transactions in 2023 with the use of technological innovations, and more local governments are now utilizing QR Ph for the payment system.

Quoting US professional baseball player and coach Lawrence Peter “Yogi” Berra, Remolona said the famous baseball catcher once said that “when you come to a fork on the road, take it.”

“At 32, we are not just marking time, we are charting our direction. One, powered by innovation and rooted in sustainability and inclusion. So, as we stand at this fork, let us not hesitate. Let us take it together with purpose and with target,” he added.