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Andal, Catherine
Atienza, Erika
Hariramani, Patrick
What is Money?
Means of Payment
Store Value
Unit of Account
History of Money
History of Money
History of Money
History of Money
History of Money
Bangko Central
FU
N
CT
IO
N
S
DeterminationofExchangeRatePolicy
LiquidityManagement
CurrencyIssue
LenderofLastResort
FinancialSupervision
ManagementofForeignCurrencyReserves
OtherActivities
Demand of Money
Is the desired holding of financial assets in the
form of money (cash or bank deposits).
Supply of Money
Money Supply in 2013 to 2014-M3
Supply of Money
Money Supply in 1980 to 2014-M3
Evolution of Money
Cashless Society?
a society in which purchases of goods or services
are made by credit card or electronic funds
transferral rather than with cash or checks.
Examples
America
Today, only 7 percent of all transactions in the
United States are done with cash, and most of
those transactions involve very small amounts of
money
Sweden
Four out of five purchases in Sweden are made
electronically or by debit card.
Somaliland
A survey in 2012 found that the average customer
made 34 transactions per month on their mobile
phones higher than almost anywhere in the world.
Canada
According to a poll by PayPal Canada, 56% of
Canadians already would prefer to use a digital
wallet than cash.
Hongkong
Octopus Card is the worlds most used smart card
system with over 13 million transactions a day. At the
end of 2013 there were over 24 million Octopus Cards or
products with Octopus functions in circulation.
Noncash payments'
share of total value of
consumer payments:
Percent of population
with a debit card
South Korea
70
58
Germany
76
88
United States
80
72
Netherlands
85
98
Australia
86
79
Sweden
89
96
United Kingdom
89
88
Canada
90
88
France
92
69
Belgium
93
86
Facts:
The world is connected and in 2013, $1 Trillion was transacted over
the internet.
30% of PH GDP is transacted and is coming from 10 Million OFWs
2.6 Million Unique Post paid plan users in PH
20 % of the P57.9-billion wireless service revenues in the first six
months of 2014.
Infrastructures
With cash, the only infrastructure you need is
for the merchant to have a good you want, you
to have cash, and some extra lying around in
case you need to make change. Thats it. Its
beautifully simple.
Infrastructure for a
cashless society
5.754 Million
Smartphones
sold
4
InSEA
th
23.1% Broadband
Subscription
9.8% of the Population
uses Mobile Internet
Philippines
2000-2004
2005-2009
2010-2014
15.49
17.23
19.31
Generation Y
Generation Y is born between the 1980s to the
early 1990s
Tech/Web Savvy
Ambitious
Multi-tasker
Work-Life Balance & Flexibility
Notes in Circulation
Disadvantages
Risk of fraudulent transactionscredit cards and debit cards can
be stolen
Customers privacy since it leaves
behind an electronic trail.
Personal data such as buying
habits can be accessed by
governments, employers and
marketers.
Highly dependent on stable
infrastructure
Challenges
Inadequate education of the benefits of cashless policy
The Philippines recorded 68 index points and ranked 8th among 16
Asia-Pacific countries covered by the latest MasterCard Index of
Financial Literacy (2013). Almost the same in 2011 with an index score
of 68.2
Poverty
Lack of understanding of the policy
Lack of trust. Resistance to change.
Prevailing cash culture in the country
Techno-fobia
Scepticism in the banking/ government system
Infrastructure Issues
Electricity
The Philippines operates three separate
power grids: One for Luzon in the north; a
second for the central Visayas region; and a
third for Mindanao in the south.
The Mindanao grid in particular has reached
the limits of its capacity in recent years, and
the other two grids are close to reaching
theirs. The roughly 22 million residents of
Mindanao, the countrys second largest
island, have been forced to endure regular
rolling blackouts, which the government says
will continue until at least 2015 as it
scrambles to add more capacity.
Internet Speed
According to recent estimates, the Philippines has
the slowest internet speed in the entire ASEAN
region, with a mere 3.6 Mbps. This is far below
the regional average of 12.4 Mbps and the global
average of 17.7 Mbps.
Mobile LTE Connection
According to the February 2014 report State of
the LTE by OpenSignal Inc., the Philippines has
the slowest LTE or Long Term Evolution
connection among the 16 countries surveyed
Among the networks, Globe Telecom and Smart
Communications have one of the poorest coverage
and slowest connection of LTE in the survey with
an average user having LTE access only 38
percent of the time
Technology
Only 3% of the transactions in the country are cashless, compared to
52% in the United States
More credit cards could be distributed in the provinces- entails great
investment from banks
Facilities to swipe
Pay bills
Collect payments
BARTER
CONS
LackofDoubleCoincidence
ofWants
LuckofDivision
LackofaCommonMeasure
ofValue
LackofStoreofValue
PROS
Relatedproductscanbe
tradedsuchasportable
tabletsinexchangefor
laptops.
Homescannowbe
exchangedwhenpeopleare
traveling
Youcanofferaservicein
exchangeforanitem
BENEFITS
Itdoesnothavebackup
valueandalsosubjectto
inflationanddevaluation
Currencyextremely
vulnerabletohyperinflation
Itiseasytoprint,easyto
transport,divisibilityisalso
easyandhasintrinsicvalue.
Norequiringbackingwith
commoditiescanalsofree
upgovernmentreservesof
goldandsilverbecausethey
nolongerneedtobe
retainedandmaintained.
CASH
COST
BENEFITS
Expensivetoprint
Canbecopiedor
reproducedbysyndicates
Noticeablebypeople
Subjecttowearandtare
Easymanagementbythe
Government
Transparentrepresentation
ofvalue
Acceptedeverywhere
Budgetingiseasy
Minimizesidentitytheft
Recommendations
Enhancement of Infrastructure and Security
Government Support
Adequate Regulatory Framework
Private Investors
Improve education
Enhancement of Infrastructure
Set up systems, card readers and telecommunication networks, which are needed as a
platform for electronic payments. Payment technologies therefore need to become more
efficient and affordable to allow customers to make payments online on a real time basis and,
also at anytime and any place.
Philippine telecom firms continue to build better infrastructure .Globe earmarked P27
billion for capital expenditures this year for the construction of additional cell sites, in
building solutions, data network and others.
The PLDT allocated P32 billion this year, with P260 billion invested from 2004 to 2013 for its
total capital expenditures.
In electricity, the 2012 Power Development Plan (PDP), committed projects from 2013 to
2016 would provide a total of 868 MW, which is more than the estimated additional required
capacity of 500 MW.
Government
Sector:
Cashless
Purchase
Card
Launch of a cashless system for government purchases- procurement system which will
allow government staff to make "cashless" purchases through cashless purchase card
The system will enable easier monitoring of government transactions, while facilitating
accurate liquidation and auditing, and ensuring efficient and transparent financial
management in government agencies.
BENEFITS
Hackers
Doublecoincidenceof
wants.
Canstillbestolen
Canleadtopoorbudget
management
Eliminatesoverproduction
andunderproduction
FasterTransaction
Easymonitoring
Instanttransfersofmoney
Nocashtosteal
Can'tbecounterfeited
Case Study
What is EFTS?
Benefits
Manageddelayeddisbursements
Collectfasterandeliminateoverdueaccounts
ReduceAdministrativecosts
Reducedtransactionprocessingcost
Improveefficiency
Increasevisibilityandcontrol
Eliminatebaddebts
THANK YOU!!!