This Christmas season, the Bangko Sentral ng Pilipinas (BSP) is encouraging people to send cash gifts via digital wallets.

"Digital wallets offer a safe, secure, efficient, and convenient way to transfer funds to family and friends during this season of giving," BSP Governor Benjamin Diokno said in a statement released by the central bank on Monday.

According to the Bangko Sentral, utilizing digital money as an alternative to delivering cash presents is strongly advised in order to avoid physical contact and virus transmission between the giver and the receiver. Despite constraints on mobility and face-to-face gatherings, this will allow the Filipino tradition of gifting aguinaldo to family, friends, and significant others to continue.

The BSP said that widespread adoption of digital money is in accordance with its goals for digital payment transformation and financial inclusion.

Citing its latest report, the central bank said it met its goal of 20 percent digital payments volume by 2020, owing to high-frequency, low-value retail transactions via electronic fund transfers.

In its push to create a more inclusive and tech-savvy Philippine economy, the Bangko Sentral said it is dedicated to stimulating digitalization of payments and digitizing at least 50 percent of all transactions by 2023.

Nonetheless, it had assured the public that there will be an adequate supply of new banknotes and coins in preparation of heightened currency demand during the Christmas season.

The BSP said currency demand peaks in October and continues to rise through December of each year. Historically, during the holiday season, demand for 1,000-, 100-, and 20-peso banknotes, as well as 20-, 5-, and 1-peso coins, has been higher.

"There will be no shortage of new banknotes in the Yule season. As in previous years and to support seasonal demand, 40 percent and 50 percent of the total volume of banknotes and coins, respectively, will be serviced in the 4th quarter of the year," Diokno has stressed.

The central bank said the public is recommended to exchange their old banknotes and coins for new ones with their banks.

It also encourages the public to use correct banknote and coin handling techniques as part of its Clean Note and Coin Policy, which aims to extend the life of banknotes and coins, lowering the cost of currency manufacture.