BSP Encourages LYKA To Get License To “Keep Things In Order” — Diokno

BSP encouraged LYKA to get a license to “keep things in order”, according to Diokno.

On Monday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said that it encouraged LYKA to get a payment operator license in order to “keep things in order”.

BSP encouraged LYKA to get a license "to keep things in order", according to Diokno.
Photo source: ABS-CBN News

Earlier, the central bank ordered LYKA to suspend its operation in the Philippines as an Operator of Payment System (OPS) and to register under the National Payment Systems Act.

According to Diokno, the suspension order for LYKA wasn’t reflective of the whole performance and digitalization effort of the Philippine economy.

Diokno told ANC that it’s one of the things that they sighted because it continued to operate without a license and they need the imprimatur of the central bank in order to “keep things in order”.

The Bangko Sentral ng Pilipinas earlier said that consumers should engage with licensed payments operators which were listed on its database.

READ ALSO: BSP Orders LYKA To Halt Operation As Operator of Payment System

The Bangko Sentral ng Pilipinas was pushing for digitalization under the National Retail Payment System (NRPS), which also included electronic money transfers InstaPay or instant transfer, and PESONet or for transactions above PHP 50,000.

However, Diokno said that the Bangko Sentral ng Pilipinas remained cautious when it comes to cryptocurrencies since virtual money was “volatile”.

According to Diokno, the thinking of central banks in the world was that it’s “not a good way of managing monetary policy in the sense that it’s volatile”.

The BSP’s digitalization goals include digitizing at least 50% of transactions and urging at least 70% of the population to open a bank account by 2023.

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