Stablecoin issuer Circle has joined forces with Philippines-based digital asset provider Coins.ph to revolutionize the country’s remittance landscape. The strategic partnership aims to transform international money transfers for Coins.ph’s vast user base of 18 million Filipinos, using the USDC stablecoin as a secure, cost-effective, and almost instantaneous method.
The Philippines witnessed a staggering $36.1 billion in remittances in 2022, according to data from the Bangko Sentral Ng Pilipinas (Central Bank of the Philippines), highlighting the vital role of remittances in the nation’s economy. Despite this, conventional remittance channels are plagued by exorbitant fees and prolonged processing times.
The World Bank reported an average 5.7% cost for sending a $200 remittance to the Asia region in 2022. This situation becomes even direr for the unbanked population, constituting 44% of Filipino adults in 2021, as per the country’s central bank.
Circle Transforming Remittances for Filipinos
Coins.ph and Circle’s strategic alliance aims to tackle these challenges head-on, focusing on real-time settlements and minimal transaction costs. The Philippines, ranking as the fourth largest recipient of global remittances, is set to benefit immensely from this initiative. The partnership will kick-start with comprehensive educational campaigns and community engagement initiatives, designed to help Filipinos abroad seamlessly adopt USDC for their remittances.
Raagulan Pathy, Circle’s Vice President for Asia Pacific, expressed enthusiasm about the partnership’s potential impact, stating, “By enabling near real-time cross-border transactions and significantly reducing transaction costs, we are actively supporting the United Nations’ Sustainable Development Goal of reducing migrant remittance transaction costs to less than 3 percent by 2023. Together, we are taking crucial strides toward enhancing economic opportunities and prosperity in the Philippines.”
This collaboration between Circle and Coins.ph marks a pivotal moment in the evolution of cross-border transactions, promising a brighter, more accessible financial future for millions of Filipinos. Stay tuned for more updates on this game-changing partnership as it reshapes the remittance landscape in the Philippines and beyond.