Circle and Coins.ph Partner to Enhance Remittances in the Philippines
Circle, a fintech firm and stablecoin issuer, has announced a strategic partnership with Coins.ph, a digital asset provider based in the Philippines. The goal of this collaboration is to improve the current remittance landscape in the region by promoting the use of USDC-denominated remittances. This safe, affordable, and nearly instantaneous method of international money transfers will benefit Coins.ph’s 18 million Filipino user base.
The Significance of Remittances in the Philippines
In 2022, remittance flows to the Philippines reached a staggering $36.1 billion, according to the Central Bank of the Philippines. This highlights the continued importance of remittances to the Philippine economy. However, traditional remittance methods often involve high fees and lengthy processing times.
Addressing Challenges with Real-Time Settlements and Minimal Transaction Costs
The average cost of sending a $200 remittance to the Asia region in 2022 was 5.7%, as reported by the World Bank. This poses even greater challenges for the unbanked population in the Philippines, which accounted for 44% of adults in 2021. To tackle these issues, Coins.ph and Circle aim to facilitate real-time settlements and reduce transaction costs in the country. As the fourth largest recipient of remittances globally, this initiative will begin with educational campaigns and community engagement initiatives to encourage Filipinos abroad to adopt USDC for remittances.
Achieving Economic Opportunity and Prosperity
Raagulan Pathy, Vice President for Asia Pacific at Circle, emphasized that by enabling near real-time cross-border transactions and significantly reducing transaction costs, they are supporting the United Nations’ Sustainable Development Goal of reducing migrant remittance costs to less than 3% by 2023. This partnership is a crucial step towards increasing economic opportunity and prosperity in the Philippines.
Expanding Lightning-Based Remittances in the Philippines
In January of this year, Strike, a popular Bitcoin payment company and wallet provider, introduced its “Send Globally” feature to the Philippines. This expansion allowed locals to receive lightning-based remittances directly to their bank accounts. Pouch.ph, a Bitcoin company facilitating peso payments over Bitcoin’s lightning network, supports this feature in the southeast island nation.
Hot Take: Enhancing Remittances for Filipinos
The partnership between Circle and Coins.ph holds great promise for improving the remittance landscape in the Philippines. By leveraging USDC-denominated remittances, this collaboration aims to provide Filipinos with a safe, affordable, and efficient method of sending money internationally. With real-time settlements and reduced transaction costs, this initiative has the potential to significantly benefit both the banked and unbanked population in the country. By embracing digital assets and innovative payment solutions, Circle and Coins.ph are taking important steps towards promoting financial inclusion and driving economic growth in the Philippines.
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