Circle has partnered with the Philippines-based crypto exchange Coins.ph to facilitate remittances through its USDC stablecoin/
Cross-border transactions have been a huge challenge through traditional means such as bank transfers. The transactions consume time, and they involve high fees.
Circle Aims to Bring Down Remittance Fees to Below 3%
According to a Circle press release, with this partnership, the USDC issuer wants to facilitate faster inward remittance from across the border.
According to Statista data from 2022, the Philippines is the fourth-largest recipient of remittances. Last year, it received $38 billion in remittances, increasing by 3.4% compared to 2021.
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However, according to The World Bank, the average cost to send $200 in the Asian region is 5.7%. If Circle manages to reduce this cost, it can help cut the financial pain for the recipients of remittances in the Philippines.
By partnering with Coins.ph, Circle commits to reducing remittance costs from 5.7% to less than 3%. Along with Circle, various other institutions also experimented with stablecoin for remittance purposes.
BeInCrypto reported that South Korea’s Shinhan Bank completed a stablecoin remittance proof-of-concept pilot on the Hedera Network in July. Furthermore, Latin America is also trying to utilize stablecoin to beat high inflation and facilitate inward remittances.
Read more: Crypto vs. Banking: Which Is a Smarter Choice?
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