In a move to transform the remittance landscape in the Philippines, stablecoin issuer Circle has teamed up with digital asset provider Coins.ph. This strategic partnership aims to revolutionize international money transfers by promoting the use of USDC-denominated remittances among Coins.ph’s extensive user base of 18 million Filipinos. With remittances amounting to a staggering $36.1 billion in 2022, as reported by the Central Bank of the Philippines, this collaboration stands to have a significant impact on the country’s economy.
Traditional remittance methods often come with high fees and lengthy processing times, making them inaccessible and impractical for many individuals. According to the World Bank, the average cost of sending a $200 remittance to the Asia region in 2022 was 5.7%, posing a significant burden on senders. Furthermore, the Philippines faces the additional challenge of a large unbanked population, with 44% of adults lacking access to traditional banking services in 2021, according to the country’s central bank.
Recognizing the need for change, Coins.ph and Circle’s partnership aims to drive real-time settlements and minimal transaction costs in the Philippines. As the fourth largest recipient of remittances globally, the country is ripe for innovative solutions that can streamline the process and make it more affordable. To kickstart this initiative, educational campaigns and community engagement initiatives will be launched to assist Filipinos abroad in adopting USDC for remittances.
By enabling cross-border transactions to become nearly real-time and significantly reducing transaction costs, Circle and Coins.ph support the United Nations’ Sustainable Development Goal of reducing the transaction cost of migrant remittances to less than 3% by 2023. This partnership is a critical step toward increasing economic opportunity and prosperity in the Philippines, aligning with the goals of sustainable development.
Circle and Coins.ph are not the first players to address the challenges of remittances in the Philippines. In January 2022, popular Bitcoin payment company and wallet provider Strike announced the expansion of its “Send Globally” feature to the country. This feature allows locals to receive lightning-based remittances directly into their bank accounts. Supported by Pouch.ph, a Bitcoin company facilitating peso payments over Bitcoin’s lightning network, this innovative solution provides an alternative avenue for Filipinos to receive funds from abroad.
The partnership between Circle and Coins.ph represents a significant step forward in revolutionizing remittances in the Philippines. By leveraging the power of USDC-denominated remittances and driving real-time settlements, this collaboration aims to make international money transfers safer, more affordable, and nearly instantaneous. With education and community engagement initiatives planned, the adoption of USDC as a remittance solution is likely to gain traction among the Filipino diaspora. As technology continues to shape finance, partnerships like this are essential in fostering economic opportunity and prosperity in developing nations.