Philippine fintech firm Coins.ph has revealed a significant partnership with global fintech company Circle Internet Financial to promote USDC-denominated remittances as a secure, low-cost alternative for international money transfers.
This collaboration aims to benefit the Philippines’ economy and support the United Nations’ goal of reducing transaction costs for migrant remittances to less than 3% by 2023.
The Philippines witnessed a staggering $36.1 billion in remittances in 2022, as reported by the Bangko Sentral Ng Pilipinas, or the Central Bank of the Philippines. It underscores the significant role remittances play in the Philippine economy.
However, traditional remittance channels are often plagued by high fees and lengthy transaction times, making it a challenging endeavor, particularly for the unbanked population, which accounted for 44% of the adult population in 2021, according to the country’s central bank.
Coins.ph & Circle’s Partnership Vision
Coins.ph and Circle’s partnership aims to enhance the remittance landscape by enabling real-time settlements and minimizing transaction costs, focusing on the Philippines, the fourth largest recipient of remittances globally.
The initiative begins by launching educational campaigns and community engagement programs to empower Filipinos living abroad to utilize USDC for remittances.
Wei Zhou, CEO of Coins.ph, has expressed dedication to offering innovative services that significantly impact users’ daily lives. USDC, renowned globally as a trusted stablecoin, plays a crucial role across various sectors, from humanitarian aid to decentralized finance (DeFi) platforms.
Raagulan Pathy, Vice President for Asia Pacific at Circle, emphasized their partnership with Coins.ph aligns with their mission to make the movement of money more accessible, inclusive, and efficient:
By making cross-border transactions near real-time and dramatically reducing transaction costs, we support the United Nations’ Sustainable Development Goal of reducing to less than 3 percent the transaction cost of migrant remittances by 2023. Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines.
This partnership between Coins.ph and Circle showcases the real-world impact of digital currencies and heralds a shared vision for the future. Both companies envision expanding their services to Southeast Asian markets with unwavering dedication to enhancing financial access and breaking down conventional barriers.
Related Reading | Bitcoin’s Next Halving Beckons: Will History Repeat Itself?