MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Monday announced that the 20-peso coin will be released in circulation in 2020 after its ceremonial launch in December.
In a statement, the BSP said once it is released, the new 20-peso coin will co-exist with the P20 New Generation Currency (NGC) banknotes as legal tender.
The P20 will be gradually removed from circulation through natural attrition, the central bank added.
Citing a study conducted by the University of the Philippines, the BSP noted that the P20 banknote is the most-used denomination for payment so it is easily rendered unfit for circulation and returned for replacement.
“The issuance of a coin in lieu of a banknote is more cost-efficient in terms of currency production in the long run,” the central bank explained.
Official photographs and specifications of the 20-peso NGC coin will be presented by BSP Governor Benjamin Diokno during the launch.
The BSP assured that the new 20-peso coin will retain “major elements” of the bill, and will contain features that are “easily distinguishable” from other coins.
Apart from the new coin, the central bank is also set to release an “enhanced” version of the P5 coin to make it “more distinct from other NGC coin series.
It said the changes were based on studies on the design, security features, and specifications of the new coins.
MANILA, Philippines – The Department of Labor and Employment (DOLE) and the Bangko Sentral ng Pilipinas (BSP) have expressed support for the electronic payment of salaries through formal accounts for workers in the private sector.
In a statement issued on Wednesday, DOLE said the e-payment of salaries will help foster financial inclusion of private-sector workers and effectively monitor proper payment of wages.
According to Labor Undersecretary Claro Arellano, a 2017 Global Findex Report found that only 6.6 percent of the country’s private sector wage-earners received their salaries through a formal account which is a deposit or e-money account held in a supervised financial institution.
“A low financial inclusion among the wage earners may be a source of abuses against the workers and violations of labor laws as there can be difficulty in verifying and validating the payment of correct wages and other mandatory benefits,” he added.
Although there is no law or regulation yet on the use of e-payments, the department underscored its advantages for employers and workers.
“For the employers, electronic payment of salaries will not only cut the transaction, administration, and overhead costs but will also reduce the incidence of leakages during disbursements,” DOLE said.
“For the employees, meanwhile, a formal account translates to easy access to financial products, including savings, credit, insurance, and investment,” it added.
Among the groups in the workers’ sector identified by the Financial Inclusion Steering Committee which may immediately benefit from the electronic payment of wages are the construction workers, bus drivers and conductors, household workers, factory workers, and workers in the retail and service industries.
The DOLE said the value of the payment of wages and salaries through formal accounts has also been acknowledged in countries such as Thailand, Qatar, India, Finland, Singapore, and Bangladesh.
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is now adopting a National Quick Response (QR) Code Standard for payments.
The BSP, on its website, said the move is in line with the agency’s thrust of ensuring the efficiency of payment systems in support of inclusive economic development in the country.
The National Quick Response (QR) Code Standard, according to BSP, utilizes the QR technology which is considered as the most convenient and cost efficient means of moving funds from one account to another.
Such technology has been effective in other countries as an alternative to the traditional debit and credit cards.
Since a QR code contains most if not all of the critical information required to be specified in a payment instruction, the use of this code minimizes encoding errors, the BSP explained.
Likewise, it is faster and easier to just scan the code than to dip or swipe a card, and sign a charge slip.
To ensure smooth implementation of the Standard, the BSP has set out a period within which the Philippine Payments Management, Inc. (PPMI), the country’s payment system management body, shall inform the Bangko Sentral of the Standard approved by the PPMI Board.
The Payment Service Providers (PSPs), meanwhile, shall adopt the Standard within thirty (30) calendar days from the date of said notification.
Nevertheless, considering that a number of PSPs have been offering QR-enabled payment services, the policy allows these PSPs to fully comply with the Standard up to 30 June 2020.
The BSP is confident that the adoption of a QR Code Standard on a national scale is expected to bring more Filipinos can enjoy the benefits of a safe, efficient, and inclusive retail payment system.
This brings OFWs’ personal remittances to US$22 billion which is about US$800,000 increase from last year’s US$21.2 billion.
Specifically, land-based OFWs with work contracts of one year or more, remitted US$16.8 billion from January to August this year, a slight increase from US$16.3 billion in the same period last year.
Meanwhile, inflows of remittances from sea-based workers and land-based workers with short-term contracts also contributed US$4.7 billion from US$4.4 billion last year.
The media release further stated that, by country source, the highest share of overall remittances for January to August 2019 was the United States with 37 percent, followed by Saudi Arabia, Singapore, United Arab Emirates, the UK, Japan, Canada, Hong Kong, Germany, and Kuwait.
The combined remittances from these countries accounted for 78.4 percent of total cash remittances from January to August 2019.
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