Circle and Coins.ph partner for USDC remittances in the Philippines
Coins.ph and Circle say the partnership aims at improving the remittance landscape in the Philippines.
The companies target cheap and near-instant remittances enabled by the USDC stablecoin.
Philippine fintech company Coins.ph and Circle, the issuer of the USDC stablecoin, have announced a strategic partnership targeted at promoting USDC-denominated remittances in the Philippines.
The companies want to drive further adoption of crypto remittances via the stablecoin for the more than 18 million Filipinos that use Coins.ph, per details in a press release published on Wednesday. The Philippines is the world’s fourth largest destination for remittances.
Circle co-founder and CEO Jeremy Allaire commented on the “broad commercial partnership” via a post on X, stating:
Today through a broad commercial partnership with @coinsph, @circle will bring $USDC distribution and remittances to their 18 Million Filipino users. Digital dollars and low-cost, instant dollar remittance continues to be unlocked in emerging markets. https://t.co/xb9gLfHx6n
— Jeremy Allaire (@jerallaire) October 11, 2023
Low-cost, near-instant USDC-denominated remittances
Coins.ph, a crypto exchange and wallet provider, says the partnership will bring not just secure, but low-cost and near-instant cross-border remittances to the people. USDC is a fiat-backed stablecoin redeemable that’s 1:1 for US dollars.
According to the Philippines central bank Bangko Sentral Ng Pilipinas, remittance inflows stood at a whopping $36.1 billion in 2022. But while these transfers play a crucial role in the country’s economic growth, the impact of huge fees and transaction delays related to conventional payment channels has been huge.
A recent World Bank report indicated that the average remittance fee via traditional rails was $200, or roughly 5.7% in 2022. USDC will greatly reduce the costs, with Coins.ph and Circle eyeing the United Nations’ target of 3% or lower for migrant remittances costs.
The use of USDC also promises financial inclusion to more people, including the 44% of the Philippine adult population that remains unbanked.
“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,” Raagulan Pathy, Circle’s VP for Asia Pacific, said in a statement.
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