Is Cryptocurrency a Trusted Mode of Payment in the Philippines?

The Philippines has seen a significant increase in the number of regulated cryptocurrency exchanges, with a total of 16 exchanges now approved by the country's central bank, Bangko Sentral ng Pilipinas (BSP). The most recent list of approved “Remittance and transfer companies (RTC) with virtual currency (VC) exchange services” includes four newly approved exchanges: Finchain Technology Inc., Iremit Inc., Moneybees Forex Corp., and Wibs PHP Inc.

These four exchanges join the existing 12 crypto exchanges that were previously approved by the BSP. The previously approved exchanges are Aba Global Philippines (Coexstar), Atomtrans Tech, Betur (dba Coins.ph), Bexpress, Bloomsolutions (Bloomx), Coinville Phils, Etranss Remittance International, Fyntegrate (dba Philippine Digital Asset Exchange or PDAX), Rebittance (Rebit, Buybitcoin.ph), Telcoin, VHCEX, and Zybi Tech (dba Juancash). However, Bitan Moneytech has been delisted and is no longer included in the BSP-approved list.

The BSP introduced a formal regulatory framework for crypto exchanges through its Circular No. 944 on February 6, 2017. Under this framework, crypto exchanges are required to register with the BSP as remittance and transfer companies.

In another significant development, the Philippine government, along with the Union Bank of the Philippines (Unionbank) and the crypto exchange PDAX, has launched a blockchain app called Bonds.ph for the distribution of government bonds. The Bureau of the Treasury and Unionbank partnered with PDAX to create the app. National Treasurer Rosalia V. De Leon stated that Bonds.ph will enable Filipinos, especially the unbanked population, to invest in the government's new retail treasury bond. The app aims to raise funds for economic recovery and strengthen the response to the COVID-19 pandemic.

Unionbank, one of the country's largest banks, has been actively involved in embracing blockchain technology. It installed a Bitcoin ATM in early 2022, and its subsidiary UBX has made investments in PDAX.

According to Unionbank President and CEO Edwin R. Bautista, Bonds.ph represents the first retail treasury bond issuance in Asia and possibly the world to utilize blockchain technology. Bautista emphasized that the Philippines is ready to take the lead in leveraging emerging technologies to provide innovative and inclusive opportunities for all Filipinos, thereby driving the nation's technological advancement.

The growing number of approved cryptocurrency exchanges in the Philippines demonstrates the country's commitment to fostering a regulated and secure environment for crypto-related activities. With the introduction of Bonds.ph, the government, and financial institutions are adopting blockchain technology to allow greater financial inclusion and mobilize money for national development and recovery efforts. These efforts demonstrate the Philippines' commitment to position itself as a worldwide leader in the crypto and blockchain field, harnessing new technology for the benefit of its people and the economy as a whole.

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