Cryptocurrencies are widely regarded as a tool to aid the growth process in developing countries. As of January 2021, there are over 4,000 crypto-assets in existence. While many of these cryptos have little to no following or trading volume, others are extremely popular among dedicated communities of backers and investors.
According to reports, the Philippines is one of the world’s fastest adopters of crypto assets. As per data, stated that the pandemic has fuelled the trend, with Filipinos releasing the value of cryptocurrency as an investment and income-generating currency.
A rise in crypto-friendly technology in the country has also aided adoption, putting the Philippines on par with Vietnam and Nigeria. The Philippine market overall has yet to embrace crypto assets, but individuals and businesses have invested in them through their international and digital connections.
Despite the Philippines’ strict regulatory environment, the first cryptocurrency was recently launched and presented to a large audience of entrepreneurs in order to help them grow their financial resources more effectively. With the rising popularity of digital cryptocurrency in the world, the crypto was successfully launched at the Cove Area in Okada Manila.
This cryptocurrency attempts to limit itself to markets that have adequate knowledge and understanding of blockchain and cryptographic tokens, smart contracts, storage mechanisms (such as digital or token wallets), blockchain-based software systems, and blockchain or distributed ledger technology.
The mission of the Philippines’ fintech company is to make cryptocurrency and blockchain technology accessible and useful to Filipinos by integrating them into financial supply chain areas and rural banks. According to the chairman of the fintech company’s board of directors, “there are more uses beyond what people currently experience.” Many central banks are experimenting with digital currencies.
Moreover, the new crypto will be a utility and service-oriented digital currency powered by its own blockchain. As blockchain technology continues to emerge and develop, an influx of governments, corporations and both public and private sector influencers continue to spread awareness and champion the practical benefits of blockchain for efficiently and effectively solving a multitude of complex global challenges.
Bangko Sentral ng Pilipinas (BSP) had also recently launched a new security framework to prevent crypto from being used in money laundering. Speaking about the changes, BSP’s Director of Technology Risk and Innovation Supervision stated that the use of crypto has revolutionised remittances and payments while also opening new fundraising opportunities.
The new framework also emphasises that all transactions involving the transfer of virtual assets must be treated as cross-border wire transfers. Service providers will be compelled to apply corresponding BSP wire transfer rules, particularly the obligation to provide immediate and secure transmittal of originator and beneficiary information from one virtual asset service provider to another for certain transactions.
Cryptocurrencies have the potential to provide significant benefits by overcoming a lack of social trust and increasing access to financial services, as they can be viewed as a medium to support the growth process in developing countries by increasing financial inclusion, providing better traceability of funds, and assisting people to escape poverty.
The speed at which crypto assets are gaining traction is a clear indication that traditional financial institutions can no longer hold the fort as well as they once did, and that other financial needs are emerging that must be addressed. Correspondingly, the world is facing an increasing need to break down borders in order to achieve full social and financial inclusion – and blockchain technology has everything it needs to address such issues. It will only be a matter of time before these crypto-assets find their way into people’s lives, shaping for the better in the interests of economic growth and inclusion.
