Circle Partners with Coins.ph for Faster and Cheaper Remittances
Cross-border transactions have always been a challenge, with traditional methods like bank transfers taking up time and incurring high fees. To address this issue, Circle has partnered with Coins.ph, a crypto exchange based in the Philippines, to facilitate remittances using its USDC stablecoin.
Bringing Down Remittance Fees to Below 3%
Circle aims to make inward remittances from across the border faster and more cost-effective. The Philippines is the fourth-largest recipient of remittances, receiving $38 billion last year alone. However, according to The World Bank, the average cost to send $200 in the Asian region is 5.7%. By collaborating with Coins.ph, Circle plans to reduce this cost to less than 3%.
Exploring the Potential of Stablecoin for Remittances
Circle is not the only institution experimenting with stablecoins for remittance purposes. Shinhan Bank in South Korea completed a stablecoin remittance proof-of-concept pilot on the Hedera Network in July. Additionally, Latin America is also exploring the use of stablecoins to combat high inflation and facilitate inward remittances.
Hot Take: Improving Remittance Services with USDC Stablecoin
The partnership between Circle and Coins.ph holds great promise for improving remittance services in the Philippines. By leveraging the USDC stablecoin, Circle aims to make cross-border transactions faster and more affordable, reducing fees to below 3%. This collaboration aligns with the increasing global interest in utilizing stablecoins for remittance purposes, as seen in other regions such as South Korea and Latin America.
By
By
By
By
By