The Market Monitor Minding the Nation's Business
The Bangko Sentral ng Pilipinas (BSP) and German government banknotes printer Bundesdruckerei GmbH signed a Memorandum of Understanding (MOU) on payments and currency management on 10 October 2024 at the BSP head office in Manila.
According to Governor Remolona, BSP recognizes “the need for banknotes for a long time to come” even as the central bank works hard to “shift more and more payments to electronic form.”
In view of this, the Governor said, “BSP is proud to partner with Bundesdruckerei, a leader in providing modern currencies to the world, at a time when banknotes should be more secure, more durable, and even more sustainable.”
Under the MOU, BSP and Bundesdruckerei GmbH will collaborate on currency management and production; securities management and production; digital payments infrastructure; and research and development on digital payments and banknote substrate.[1]
The two entities also aim to work together on technology exchange; staff exchange and training; information-sharing on legal aspects relevant to payments and currency management; and other areas to provide support, assistance, sharing of best practices and expertise, and capacity-building or technical assistance to each other.
Effective for five years, the MOU highlighted the importance of cooperation in payments and currency management to enhance and strengthen the roles of government entities in the post-pandemic economic recovery and sustain the growth of both economies.