Coins.ph recently announced a strategic partnership with Circle Internet Financial (Circle), a global fintech firm and issuer of USDC, to drive awareness of USDC-denominated remittances as a secure, low-cost, and near-instant solution for international money transfers for the 18 million Filipino users of Coins.ph.
USDC is a regulated, fully-backed digital dollar, or stablecoin, available 24/7, moves at internet speed, and is always redeemable 1:1 for US dollars. Because USDC runs on global blockchains with low entry barriers and minimal transaction costs, it is playing a growing role in facilitating cross-border payments and remittances worldwide.
With a staggering $36.1 billion in remittance flows in 2022 alone, according to the Bangko Sentral Ng Pilipinas, remittances continue contributing to the Philippines’ economy. However, conventional remittance channels often involve high fees and lengthy transaction times. According to the World Bank, the average cost of sending a $200 remittance to the Asia region in 2022 is 5.7 percent. In the Philippines, remittances are even more challenging for the unbanked, who comprised 44 percent of the adult population in 2021, according to the country’s central bank.
By driving real-time settlements and minimal transaction costs, Coins.ph and Circle’s partnership aims to improve the existing remittance landscape, starting in the Philippines, the fourth largest recipient globally. The initiative begins with educational campaigns and community engagement initiatives to help Filipinos abroad learn to use USDC for remittances.