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Friday, March 29, 2024

Bangko Sentral okays ‘Sandbox Framework’

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The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, approved the Regulatory Sandbox Framework, which formalizes the test and learn approach―a system that allows financial institutions, third-party service providers and new players to offer financial products and services using new technology to a limited number of customers in a controlled environment.

The framework enables the participants in the sandbox to explore the potential of new technologies without posing significant risks to financial stability or harming the consumers.

Bangko Sentral Governor Felipe Medalla said the BSP always championed responsible innovation “since we see it as a catalyst to promote efficiency in the financial system and expand financial inclusion.”

“We are deeply committed to ensuring that attendant risks in using new technologies are effectively managed through enabling and responsive regulations,” Medalla said.

Under the framework, each sandbox will undergo a four-stage process including application, evaluation, testing and exit stages. The sandbox project will run for 12 months, and the BSP will determine whether the sandboxed product/service is “fit for broader or mass adoption.”

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