The remittance sector in the Philippines is set to undergo a major transformation as stablecoin issuer Circle joins forces with digital asset provider Coins.ph in a strategic partnership. This collaboration aims to revolutionize the existing remittance landscape by promoting the use of USDC-denominated remittances, making international money transfers safe, affordable, and nearly instantaneous for Coins.ph’s 18 million Filipino user base.
Remittances play a crucial role in the Philippine economy, with an astounding $36.1 billion flowing into the country in 2022, according to the Bangko Sentral Ng Pilipinas. Recognizing the continued importance of remittances, Circle emphasizes the need for improved methods of transfer. Traditional remittance methods are known for their high fees and slow processing times, making it a burdensome experience for individuals sending money to their loved ones.
Sending a $200 remittance to the Asia region in 2022 came at an average cost of 5.7%, as reported by the World Bank. This cost is a significant burden, particularly for the unbanked population in the Philippines, which accounted for 44% of the adult population in 2021, according to the country’s central bank. To address these challenges, Coins.ph and Circle have come together to drive real-time settlements and minimize transaction costs in the Philippines.
The partnership between Coins.ph and Circle will commence with the launch of educational campaigns and community engagement initiatives aimed at encouraging Filipinos abroad to adopt USDC for remittances. By educating the Filipino diaspora on the benefits of using stablecoins for cross-border transactions, the collaboration hopes to empower individuals to make cost-effective and efficient money transfers.
Raagulan Pathy, Vice President for Asia Pacific for Circle, highlights the significance of this partnership in supporting the United Nations’ Sustainable Development Goal of reducing transaction costs for migrant remittances to less than 3% by 2023. By facilitating near-real-time transactions and significantly reducing fees, Circle and Coins.ph are making vital strides toward increasing economic opportunity and prosperity in the Philippines.
In January of this year, Strike, a popular Bitcoin payment company and wallet provider, expanded its “Send Globally” feature to the Philippines. This enhancement enabled Filipinos to receive lightning-based remittances directly into their bank accounts. The support for this feature in the country is facilitated by Pouch.ph, a Bitcoin company that facilitates peso payments over Bitcoin’s lightning network.
The strategic partnership between Circle and Coins.ph is set to revolutionize the remittance landscape in the Philippines. By promoting the adoption of USDC and providing efficient and cost-effective cross-border transactions, this collaboration aims to alleviate the financial burdens faced by Filipinos. Ultimately, the objective is to drive economic opportunity and prosperity, supporting the United Nations’ Sustainable Development Goals and fostering a brighter future for the Philippine economy.