Circles Dives In Philippines’ $36,100,000,000 Remittance Industry

It has been reported that Circle seems to be making massive moves these days. Check out the firm’s latest partnership and see the plans that the company has.

Coins.ph, a crypto exchange based in the Philippines, has announced a partnership with fintech firm Circle to enhance remittance services for its 18 million Filipino users.

The collaboration will make it possible for users to enjoy fast, secure, and affordable international money transfers through stablecoin-denominated remittances.

Circle, the issuer of USDC, the second-largest stablecoin, aims to keep a 1-to-1 peg with the US dollar, making it an ideal choice for sending money abroad.

The partnership aims to increase awareness among users about the advantages of using USDC for remittances.

“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 of remittances globally.”

The notes continued and said the following:

“The initiative begins with educational campaigns and community engagement initiatives to help Filipinos abroad learn to use USDC for remittances.”

Remittances play a significant role in the Philippines’ economy. The country’s central bank, the Bangko Sentral ng Pilipinas (BSP), reports that Overseas Filipinos (OFs) sent $36.1 billion in money transfers in 2022.

This amount makes up 8.9% and 8.4% of the nation’s Gross Domestic Product (GDP) and Gross National Income (GNI), respectively.

Despite the size of the remittance industry, conventional channels for money transfers still involve high fees and lengthy transaction times.

This poses challenges for the unbanked, who make up 44% of the country’s adult population in 2021, according to Coins.ph.

Raagulan Pathy, Circle’s Vice President for Asia Pacific stated the following:

“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.”

He concluded by affirming: “Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines.”