The Central Bank of Philippines (BSP) and the Monetary Authority of Singapore (MAS) have signed a ‘FinTech Co-operation Agreement’ with a view of promoting financial technologies in each other’s markets, Cryptocoins News reported.
The agreement outlines a framework wherein the two central banks will collaborate to share emerging FinTech trends and developments and refer promising FinTech startups and companies to each other, carving an easier entry into the other’s market with regulatory backing.
“MAS and the BSP are like-minded in their focus on harnessing financial technology to reduce inefficiency and benefit individuals and businesses,” MAS managing director Ravi Menon stated.
“This Cooperation Agreement between our two agencies provides a framework for promoting financial innovation not only in our countries but can also potentially contribute to broader efforts in ASEAN.”
In signing the agreement with Singapore, BSP governor Nestor A. Espenilla said: The BSP looks forward to exciting times ahead as the CA unlocks diverse opportunities for new collaborations to prosper that maximize benefits of innovative technologies. This would ultimately pave the way for a more progressive, modern and inclusive financial system.”
The central banks will also undertake joint projects in the industry, which could include using blockchain technology to facilitate ‘faster cross-border payments and streamlining “know-your-client” (KYC) processes.
Establishing blockchain payment rails between the two countries would mean a significant state endorsement to the financial technology that underpins cryptocurrencies like Bitcoin (Bitcoin).