Stablecoin-Issuer Circle Pushes for USDC Adoption in the Philippines – What’s Going On?
Stablecoin issuer Circle has teamed up with Coins.ph, a major Philippine crypto exchange and crypto wallet provider, to enhance financial inclusion and improve remittances in the Philippines.
According to an announcement published by Circle on Wednesday, the partnership aims to raise awareness of USDC-denominated remittances as a secure, low-cost, and near-instant solution for international money transfers for Coins.ph’s 18 million users.
ICYMI: We are collaborating with @coinsph to drive financial inclusion through $USDC for over 18 million Filipino users.— Circle (@circle) October 11, 2023
Together, we aim to drive awareness of USDC-denominated remittances as a secure, low-cost and near-instant solution for international money transfers.
The stablecoin has a current market capitalization of $25.15 billion.
Philippines a major hub for remittances
The Philippines is known as a major recipient country for remittances, receiving a staggering $36.1 billion in remittances 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%.
Moreover, the Philippines’ unbanked population, comprising 44% of adults in 2021, faces even more significant remittance challenges.
According to Circle’s announcement, the partnership will drive real-time settlements and minimal transaction costs for users.
The two companies said that the new push will begin with educational campaigns and community engagement initiatives to help Filipinos abroad learn to use USDC for remittances.
Lower-cost remittances for Filipinos
Coins.ph CEO Wei Zhou expressed the partnership’s goal to provide a faster, lower-cost, and more accessible remittance option for their users.
“Coupled with our recent innovations in Web3 technology, this initiative demonstrates Coins.ph’s commitment to providing users’ access to innovative services that have a tangible impact on their everyday lives,” he said.
Raagulan Pathy, Vice President for Asia Pacific for Circle, explained that this collaboration supports the United Nations’ Sustainable Development Goal to reduce migrant remittance transaction costs to less than 3% by 2023.
“Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines,” Pathy said.