Sunday, 22 December 2024
Coins.ph and Circle foster Philippine financial inclusion via remittances
Coins.ph, the Philippines’ leading cryptocurrency exchange and digital wallet provider, today announced a strategic partnership with Circle Internet Financial (Circle), a global fintech firm and issuer of USDC, to drive awareness of USDC-denominated remittances as a secure, low-cost and near-instant solution for international money transfers for the 18 million Filipino users of Coins.ph.
USDC is a regulated, fully-backed digital dollar, or stablecoin, that is available 24/7, moves at internet speed and is always redeemable 1:1 for US dollars. Because USDC runs on global blockchains – which have low barriers to entry and minimal transaction costs – it is playing a growing role in facilitating cross-border payments and remittances worldwide.
With a staggering $36.1 billion in remittance flows in 2022 alone according to the Bangko Sentral Ng Pilipinas (Central Bank of the Philippines), remittances continue to be a vital contributor to the Philippines' economy. However, conventional remittance channels often involve high fees and lengthy transaction times. The average cost of sending a $200 remittance to the Asia region in 2022 is 5.7%, according to the World Bank. In the Philippines, remittances are even more challenging for the unbanked, who comprised 44% of the adult population in 2021, according to the country’s central bank.
By driving real-time settlements and minimal transaction costs, Coins.ph and Circle’s partnership aims to improve the existing remittance landscape, starting in the Philippines, the fourth largest recipient of remittances globally. The initiative begins with educational campaigns and community engagement initiatives to help Filipinos abroad learn to use USDC for remittances.
Wei Zhou, CEO of Coins.ph, said: “Coins.ph’s partnership with Circle aims to show how USDC can provide a faster, lower-cost and more accessible remittance option for our 18 million Filipino users and their families and loved ones abroad.”
“Coupled with our recent innovations in Web3 technology, this initiative demonstrates Coins.ph’s commitment to providing users’ access to innovative services that have a tangible impact on their everyday lives.”
USDC has gained global recognition as a trusted stablecoin, and its applications span from delivering humanitarian aid and relief to facilitating e-commerce and cross-border transactions and serving as an integral component of decentralised finance (DeFi) platforms.
Raagulan Pathy, vice president for Asia Pacific for Circle, said: “Working with Coins.ph is an extension of how Circle is making the movement of money more accessible, inclusive and efficient.”
“By making cross-border transactions near real-time and dramatically reducing transaction costs, we support the United Nations' Sustainable Development Goal of reducing to less than 3% the transaction cost of migrant remittances by 2023. Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines.”
The partnership between Coins.ph and Circle not only underscores the real-world impact of digital currencies on millions of lives, but also heralds a shared vision for the future by both companies.
“As Coins.ph envisions expanding our services to reach more Southeast Asian markets, we remain determined to facilitate greater access to financial services and dismantle traditional barriers. We are at the beginning of this partnership with Circle, and we anticipate further collaboration in our shared mission to foster a more inclusive financial future,” said Zhou.
Re-disseminated by The Asian Banker
