In response to rapid progress toward the digital economy, we should further strengthen research on the technological and institutional aspects of adopting central bank digital currency (CBDC). In addition, we should set up a system to effectively monitor companies including Big Tech firms offering new payment services in order to ensure safety of the payment and settlement system.
The trends in the real effective exchange rate (REER) show that the peso has generally maintained its international competitiveness over the last ten years. With generally lower inflation rates, the Philippine peso has accommodated some appreciation, but without undermining external price competitiveness. Third, on financial sector policy – the BSP has put in place critical reforms geared toward maintaining a healthy banking system.