Coins.ph, the Philippines’ leading cryptocurrency exchange and digital wallet provider, has announced a strategic partnership with Circle Internet Financial (Circle), a global fintech firm and issuer of USDC.
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The collaboration aims to raise awareness about the benefits of using USDC, the companies said in a joint press statement.
According to the press release, the collaboration is also aimed at helping drive awareness of USDC-denominated remittances as a secure, low-cost and near-instant solution for international money transfers for the more than 18 million users of Coins.ph in the Philippines.
Remittances continue to be a vital contributor to PH economy
With a staggering $36.1 billion in remittance flows in 2022 alone according to the Bangko Sentral Ng Pilipinas (BSP), 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 comprise 44% of the adult population in 2021, according to the BSP.
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.
“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,” said Coins.ph CEO Wei Zhou.
“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,” he added.
Consumers now turning to cryptocurrencies as a payment option
Recent studies have shown that some consumers are turning to cryptocurrencies as a payment option that allows them to send cross-border remittances swiftly and securely.
According to “The Digital Currency Shift: The Cross-Border Remittances Report,” about a quarter of consumers see this option to send funds in cryptocurrency as a key motivator in choosing a payment services provider.
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 decentralized finance (DeFi) platforms.
“Working with Coins.ph is an extension of how Circle is making the movement of money more accessible, inclusive and efficient,” said Raagulan Pathy, Vice President for Asia Pacific for Circle.
“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 per cent the transaction cost of migrant remittances by 2023. Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines,” Pathy further stated.
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,” ends Zhou.