How Two New Digital Currency Exchanges For Philippine Central Bank Nod?
Philippine has adopted a progressive approach towards the cryptocurrency market for different reasons. The country’s Bangko Sentral ng Pilipinas (BSP) has taken one more step in that direction in giving approval to two fresh digital currency exchanges in the country. As a result, the accredited virtual currency exchange numbers increased to five in the country. Incidentally, the move comes even as the cryptocurrency is showing some recovery though ambiguity continued to haunt the sector.
The central bank’s Deputy Governor, Chuchi G Fonacier, disclosed in a statement that its operating approval was to carry out the conversion of the local currency, i.e., pesos (PHO), into cryptocurrencies. ETranss and Virtual Currency Philippines, Inc. are the two exchanges that were given approval by BSP. It is clear that the country has attracted measured attention in the face of a boom in digital coin sector mainly for its unique approach. The country has opted not to crack down on trading of virtual currencies and even avoided sending out mixed signals, which is being adopted by most of the nations in the world.
The central bank has taken a consistent policy direction thus recognizing the big advantages of the digital coin sector to Filipinos especially in respect of getting credit cheaply. That would allow not only cheaper but also faster remittances from other countries, CCN.com reported. Interestingly, the crypto app, Coins.ph, which is the most popular one in the country, is enjoying a user base of over five million and over a million users were on Android application alone.
Significantly, the app has generated uncultivated popularity as it offered a range of services like credit options, short-term unsecured loan facilities, and bill settlements. This apart, it also offers cheap and quick remittance services that are key to the people of Filipino as they work abroad and send approximately $7 billion to home in the first quarter of the current calendar year. This has made other crypto platforms to explode into the popularity of digital coin payments.
Earlier this month, there was a report that the Cagayan Economic Zone Authority (CEZA) would clinch a maximum of 25 exchanges to deal with digital coins through friendly tax policies and regulations. This came at a time when crypto-associated innovation was viewed as a competitor by several regulators.
Financial Industry Boom
Crypto has changed Philippine’s face of the economy too since it was considered as an ossified economy. This meant that people had no alternative but to move abroad for opportunities. That has now changed since the country is seeing a financial industry boom driven by the crypto community. This would mean that the steps or initiatives taken by the establishment are yielding the expected results.
Another key factor is that both crypto startups and digital currency exchanges are performing better than the conventional financial institutions and service provider. This was evident when Coins.ph could attract $10 million in funding to become one among the top ten most used domestic app. This topped the growth pace of any other fintech apps in the country. Philippine also gave official recognition and legitimized the crypto sector quickly.