Sandbox Regulation Allows Cryptocurrencies And Other Virtual Assets To Thrive And Develop

Introduction

These last few years' leaps in technology have not spared the financial sector. The COVID pandemic only accelerated the pace. Fintech has given birth to Electronic-Money (e-Money) and Virtual Assets (VA's) which have proven to be more accessible and inclusive than traditional banking. The advent of Fintech has revolutionized the way money is transferred, exchanged, and invested.

The reason could be there are more people with mobile phones than bank accounts, according to the Central Bank of the Philippines (Bangko Sentral ng Pilipinas or "BSP").¹ Notably, many of those who don't have bank accounts, have E-Money or E-wallets and some have Virtual Assets. The BSP hopes that with digital financial inclusion, more and more of those who have never been open to traditional banking be given greater access to engage in the formal financial sector.