Stablecoin issuer Circle has joined forces with Coins.ph, a leading cryptocurrency exchange and wallet provider in the Philippines, to enhance financial inclusion and improve remittances in the country. The partnership aims to raise awareness of USDC-denominated remittances as a secure, low-cost, and near-instant solution for international money transfers.
Driving Financial Inclusion
By collaborating with Coins.ph, Circle hopes to reach the 18 million users of the platform and provide them with a more accessible remittance option. The partnership seeks to address the challenges faced by the unbanked population in the Philippines, which constitutes 44% of adults as of 2021.
“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,” said Wei Zhou, CEO of Coins.ph.
The Benefits of USDC
USDC, the stablecoin issued by Circle, is regulated in the United States and is backed 1:1 by US dollars. It is ranked as the second-most popular stablecoin in the world, following Tether (USDT), with a market capitalization of $25.15 billion.
“Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines,” said Raagulan Pathy, Vice President for Asia Pacific for Circle.
The Philippines is a major recipient of remittances, with a staggering $36.1 billion received in 2022. However, traditional remittance methods often involve high fees and slow transaction times, posing challenges to both senders and recipients.
According to Circle’s announcement, the partnership between Circle and Coins.ph will enable real-time settlements and minimal transaction costs for users, offering a faster and more cost-effective option for remittances.
“This collaboration supports the United Nations’ Sustainable Development Goal to reduce migrant remittance transaction costs to less than 3% by 2023,” explained Raagulan Pathy, Vice President for Asia Pacific for Circle.
To kickstart the initiative, educational campaigns and community engagement initiatives will be implemented to help Filipinos abroad learn how to utilize USDC for remittances.
