In a bid to amplify the utility and adoption of its United States dollar-pegged stablecoin (USDC), Circle has forged a strategic alliance with Coins.ph, a leading cryptocurrency exchange and digital wallet provider in the Philippines. This collaboration, announced on October 10, is set to usher in an era of enhanced efficiency and affordability in cross-border money transfers for the Filipino populace.
According to World Bank data cited by the partnering firms, the average cost incurred in sending a $200 payment to Asia stood at 5.7% in 2022. The Philippines, marked by a significant unbanked adult population that accounted for 44% in 2021, faces compounded challenges in the remittance landscape. In this backdrop, remittances, which amassed an astonishing $36.1 billion in 2022, play a crucial role in bolstering the nation’s economy.
The partnership between Circle and Coins.ph is engineered to transform this scenario, initiating its journey in the Philippines, a global heavyweight in remittance receipts. The collaborative venture encompasses educational drives and robust community engagement strategies aimed at equipping the Filipino diaspora with the knowledge and tools to leverage USDC for remittances.
Coins.ph CEO Wei Zhou expressed optimism about the potential of this alliance to unveil a faster, cost-effective, and accessible avenue for remittances for the platform’s 18 million users and their families residing abroad. Zhou underscored Coins.ph’s unwavering dedication to innovating and offering services that directly impact the users’ daily experiences, a commitment further illuminated by the firm’s recent strides in Web3 technology.
Coins.ph, established in 2014, has carved its niche as a dominant cryptocurrency exchange in the Philippines, offering users the convenience of paying bills and executing money remittances via its digital wallet. As of the announcement, USDC is among the stablecoins listed on Coins.ph, albeit trading volumes of USDC are at $44,500 daily, representing approximately 13% of all daily trades in Tether (USDT), a competitive stablecoin.
In this innovative partnership, Circle and Coins.ph are not just enhancing the liquidity and utility of USDC but are also contributing significantly to alleviating the financial constraints and operational inefficiencies faced by millions in the remittance ecosystem in the Philippines. The alliance is a significant stride towards integrating digital currencies and traditional financial services, heralding enhanced inclusivity and financial empowerment.