President Duterte Signs EO For Government Adoption of Digital Payments

On Monday, President Rodrigo Duterte issued Executive Order (EO) 170 which orders the adoption of digital payments for government disbursements and collections. Under the EO government agencies, “all departments, agencies, and instrumentalities of the government, including state universities and colleges, government-owned or -controlled corporations” are authorized to disburse funds directly into the transaction accounts of recipients or beneficiaries.

However, despite the EO, cash and other traditional modes of payment may still be accepted by government departments and agencies. “The adoption of digital payments for government disbursements will facilitate the expedient distribution of financial assistance to beneficiaries,” stated EO 170.

Through this, the government hopes to provide “a catalyst for financial inclusion for the most vulnerable sectors of society” which serves to move the country closer to the attainment of AmBisyon Natin 2040 — the government’s guide for long-term development planning — while also promoting a more inclusive and resilient future-ready economy.

The use of digital payment services for the government was motivated by the challenges brought about by the global pandemic, particularly in terms of mobility restrictions which affected the convenience and security of transactions. Government agencies are also ordered to prepare digital payments in the event of calamities and other emergencies under the EO’s Business   Continuity  Plan.

Additionally, a Technical Working Group on the Adoption of Digital Payments — consisting of the Department of Finance (DOF), Department of Budget and Management (DBM), Bureau of Treasury (BTr), Bureau of Internal Revenue (BIR), and the Government Procurement Policy Board (GPPB) Technical Support Office — is also expected to be established “to provide guidance and promote cost-efficiency and transparency in the procurement of digital payment solutions.”

All government departments, agencies, bureaus, offices, and instrumentalities that are involved in the adoption of digital payments are, likewise, instructed to offer full assistance and cooperation to the TWG. The Department of Information and Communications (DICT), on the other hand, has been assigned to guarantee competent internet connectivity to aid the government’s digitalization of financial transactions. Earlier in April, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokono noted that the country is set to meet its goal of digitalizing 50% of payments by 2023.

Sources: ABS CBN, GMA News