The head of the CFTC recently made a statement suggesting that stablecoins should be considered commodities, causing confusion among users due to the SEC’s intervention as reported by Todayq News. However, amidst ongoing global regulations surrounding stablecoins, Circle the issuer of USDC has made an exciting announcement for crypto users.
On October 10, Circle, the issuer of the U.S. dollar-pegged stablecoin, USDC, announced a strategic collaboration with Coins(Dot)ph, a cryptocurrency exchange and digital wallet provider in the Philippines. This collaboration aims to promote the adoption of USDC for cross-border transactions, reducing costs and improving transaction speed, especially for the unbanked population in the Philippines.
Soothing the burden of high cross-border payment Costs
Sending a $200 payment to Asia incurred an average cost of 5.7% in 2022, according to World Bank data. In the Philippines, a significant portion of the adult population remains unbanked, accounting for 44% in 2021, as reported by the Philippines Central Bank.
The Philippines received an impressive $36.1 billion in money orders in 2022, making it one of the world’s largest recipients of cross-border money transfers. However, traditional money order channels involve high fees and long transaction times, creating a need for more efficient solutions.
USDC gains popularity in the Philippines
Circle and Coins(Dot)ph plan to enhance the money orders landscape, with a focus on educational campaigns and community engagement initiatives to empower Filipinos abroad to utilize USDC for money orders. Coins(Dot)ph, as a major cryptocurrency exchange in the Philippines, not only offers trading but also allows users to pay bills and send money via its digital wallet.
Coins(Dot)ph’s CEO, Wei Zhou, highlighted the potential impact of this partnership, stating:
“Coins(dot)ph has teamed up with Circle to bring a quicker, more affordable, and easier remittance option using USDC for its 18 million Filipino users, benefitting their families abroad.”
While USDC is not the only stablecoin listed on Coins.ph, it has gained popularity with daily trading volumes of $44,500, constituting approximately 13% of all daily trading in Tether, a major rival stablecoin. As of the announcement, the exchange averages about $1 million in daily trading, according to CoinGecko.
Related Article: US lawmakers want to support stablecoins as a recognized payment method
This partnership between Circle and Coins(Dot)ph represents a significant step toward making remittances more accessible and cost-effective for Filipinos, addressing a vital aspect of the Philippines’ economy and the global financial landscape.
