Circle and Coins.ph Team Up to Revolutionize Cross-Border Remittances

Circle and Coins.ph Team Up to Revolutionize Cross-Border Remittances

The landscape of remittances is undergoing a transformation as Circle joins forces with Coins.ph, a Philippine-based fintech firm, to promote remittances based on USDC. This strategic partnership is geared towards revolutionizing international money transfers, enhancing their security, cost-effectiveness, and aligning with the United Nations’ objective of reducing transaction costs for migrant remittances to below 3% by 2023.

Circle’s Strategic Partnership with Coins.ph

Circle, a global fintech company and a key issuer of USDC, recently announced a strategic alliance with Coins.ph, a prominent cryptocurrency exchange and digital wallet provider based in the Philippines.

The primary goal of this collaboration is to raise awareness among Coins.ph’s extensive user base of 18 million in the Philippines about the advantages of USDC-denominated remittances.

USDC: A Game-Changing Stablecoin

USDC, a fully-backed digital dollar or stablecoin, operates seamlessly around the clock, enabling rapid transactions and maintaining a 1:1 redemption for U.S. dollars. Leveraging the advantages of global blockchains with minimal transaction costs, USDC is rapidly emerging as a facilitator for cross-border payments and remittances on a global scale.

The Philippine Remittance Landscape

The Philippines has witnessed an influx of remittances, reaching a substantial $36.1 billion in 2022 as reported by the Bangko Sentral Ng Pilipinas or Central Bank of the Philippines. These remittances play a pivotal role in the country’s economy.

However, traditional remittance methods often involve high fees and extended transaction times. The average cost for sending a $200 remittance to the Asia region in 2022 stood at 5.7%, as per the World Bank.

Furthermore, a significant portion of the adult population in the Philippines remains unbanked, posing a challenge for remittance transactions. The partnership between Coins.ph and Circle aims to address these issues by enabling real-time settlements and reducing transaction costs, particularly benefiting the unbanked population.

The Vision of the Partnership

Wei Zhou, CEO of Coins.ph, emphasized that this partnership is aimed at providing a faster, more accessible, and cost-effective remittance option for their 18 million Filipino users and their families. In addition to the USDC partnership, Coins.ph actively embraces Web3 technology to further enhance user services.

This initiative aligns with the United Nations’ Sustainable Development Goal of reducing migrant remittance transaction costs to less than 3% by the end of 2023. It marks a crucial step toward increasing economic opportunity and prosperity in the Philippines.

Raagulan Pathy, Vice President for Asia Pacific for Circle, also expressed enthusiasm for the partnership. He believes that this collaboration will advance the movement of money to be more accessible, inclusive, and efficient.

A Glimpse into the Future

This collaboration not only underscores the real-world impact of digital currencies on millions of lives but also heralds a shared vision for a more inclusive financial future. As Coins.ph plans to expand into more Southeast Asian markets, collaboration with Circle remains pivotal in its mission to foster financial inclusion.

In a rapidly evolving digital financial landscape, the partnership between Coins.ph and Circle stands as a testament to the potential of blockchain technology and digital currencies to bring about meaningful change in the world of remittances.