Circle Partners Fintech Firm To Redefine USDC Remittance Scene

The world of remittances is transforming Circle teams up with the Philippine-based fintech firm Coins.ph to promote USDC-denominated remittances. This strategic partnership aims to revolutionize international money transfers, making them more secure and cost-effective, aligning with the United Nations’ goal to reduce transaction costs for migrant remittances to under 3% by 2023.

Circle Partners With Coins.ph

Circle, a global fintech firm and issuer of USDC, recently announced that it has forged a strategic alliance with Coins.ph. Meanwhile, Coins.ph is a leading cryptocurrency exchange and digital wallet provider based in the Philippines.

According to the announcement, the collaboration intends to raise awareness among the Philippines’ 18 million Coins.ph users about the advantages of USDC-denominated remittances.

Meanwhile, USDC is a fully-backed digital dollar or stablecoin that operates around the clock, facilitating rapid transactions, and can always be redeemed 1:1 for U.S. dollars. With the advantage of global blockchains with minimal transaction costs, USDC is rapidly emerging as a facilitator for cross-border payments and remittances worldwide.

The Philippines has experienced staggering remittance flows, reaching $36.1 billion in 2022 as reported by the Bangko Sentral Ng Pilipinas or Central Bank of the Philippines. Notably, these remittances play a crucial role in the country’s economy.

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

Moreover, a significant portion of the Philippines’ adult population is unbanked, making remittances more challenging. This partnership between Coins.ph and Circle aims to tackle these issues by enabling real-time settlements and reducing transaction costs, particularly benefiting the unbanked population.

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A Shared Vision

Wei Zhou, CEO of Coins.ph emphasized that this partnership aims to provide 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 is actively embracing Web3 technology to further enhance user services.

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

On the other hand, Raagulan Pathy, Vice President for Asia Pacific for Circle, also lauded the partnership. He believes that this partnership would help in advancing the movement of money to be more accessible, inclusive, and efficient.

It 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.

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

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