Coins.ph has announced a strategic partnership with Circle to boost financial inclusion across the Philippines. The idea is to facilitate a USDC-based remittance mechanism to cover the section of the population that is still unbanked. According to statistics, nearly 44% of the population is unbanked in the region.
To support international money transfers, the remittance mechanism will have USDC backing. It is estimated that it will benefit at least 18 million users in the Philippines. USDC-backed remittance mechanism is safe, low-cost, and near-instant.
Remittances drive a major portion of the economy of the Philippines. The Central Bank of the Philippines has said that 2022 alone reported $36.1 billion in remittance flows. What really stops people from increasing their involvement is the high fee. There are 5.7% fees for sending $200 across the border. Lengthy transaction times add to the problem.
Coin.ph and Circle have partnered to solve this issue. They aim to improve the landscape of remittance via real-time settlement and the lowest possible transaction cost. They will start the partnership with an educational campaign, followed by community engagement initiatives. This will enable people to learn about USDC and remittances that are based on stablecoin.
USDC is pegged to the US Dollar in 1:1 and is available to users throughout the day and night. Several top crypto exchanges have started relying on the stablecoin, for it moves at the speed of the internet and can be redeemed at any time. While it is Coin.ph at the moment, others like Coinbase, Binance, and Bitfinex could soon follow the trend to better serve their customers in the Philippines.
Experts believe the Philippines could also be a testing stage where the USDC-based remittance will first be tested. It will then be implemented worldwide, or at least in those regions where relevant authorities support the operations of crypto ventures.
Wei Zhou, the Chief Executive Officer of Coins.ph, has said that their partnership with Circle is to show that USDC can move faster, is more accessible, and carries very little cost, thereby helping over 18 million Filipino customers. Wei has further stated that the partnership demonstrates a commitment to making innovation accessible to all users so that there are tangible impacts on their lives.
Raagulan Pathy, the VP at Circle for Asia Pacific, has said that working with Coins.ph is an extension of the movement where Circle makes money more accessible, efficient, and inclusive. Pathy has also said they are supporting the Sustainable Development Goal of the UN by bringing real-time settlement and low-cost transfers to remittances. They are reducing the transaction cost to less than 3%.
Moving forward, Coins.ph will work to expand its services for a broader reach in Southeast Asian markets.