Circle Partners with Coins.ph to Enhance Remittances in the Philippines
Stablecoin issuer Circle has joined forces with Coins.ph, a leading Philippine crypto exchange and wallet provider, to promote financial inclusion and improve remittances in the country. The partnership aims to raise awareness among Coins.ph’s 18 million users about the benefits of using USDC-denominated remittances for secure, low-cost, and near-instant international money transfers. USDC, Circle’s stablecoin, is regulated in the US and is redeemable 1:1 for US dollars. It is currently the second most popular stablecoin after Tether (USDT), with a market capitalization of $25.15 billion.
The Philippines as a Major Hub for Remittances
The Philippines is a significant recipient of remittances, having received $36.1 billion in 2022. However, traditional remittance methods often involve high fees and slow transaction times. The average cost of sending a $200 remittance to the Asia region in 2022 was 5.7%. Additionally, the country’s unbanked population, which accounts for 44% of adults in 2021, faces even greater challenges when it comes to remittances.
Driving Real-time Settlements and Lower Transaction Costs
The partnership between Circle and Coins.ph aims to enable real-time settlements and minimize transaction costs for users. To kickstart this initiative, the companies will launch educational campaigns and community engagement initiatives to help Filipinos abroad learn how to use USDC for remittances.
Aiming for Lower-cost Remittances
Coins.ph CEO Wei Zhou expressed the partnership’s goal of providing a faster, lower-cost, and more accessible remittance option for their users. He emphasized Coins.ph’s commitment to offering innovative services that have a tangible impact on people’s everyday lives. Raagulan Pathy, Vice President for Asia Pacific at Circle, stated that this collaboration aligns with the United Nations’ Sustainable Development Goal to reduce migrant remittance transaction costs to less than 3% by 2023. The partnership between Circle and Coins.ph aims to increase economic opportunity and prosperity in the Philippines.
Hot Take: Enhancing Financial Inclusion and Remittances in the Philippines
Circle’s partnership with Coins.ph is set to revolutionize remittances in the Philippines by providing a secure, low-cost, and near-instant solution through USDC-denominated transfers. This collaboration aims to address the challenges faced by traditional remittance methods and the unbanked population in the country. By driving real-time settlements and reducing transaction costs, Circle and Coins.ph are working towards making remittances more accessible and affordable for Filipinos. This initiative not only aligns with global efforts to reduce remittance costs but also supports financial inclusion and economic development in the Philippines.
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