Many countries in the world are still resistant to letting their citizens legally use cryptocurrencies. However, the popularity of blockchain technology rapidly increases, and more and more countries are aware of the benefits related to the implementation of cryptosystems in their national financial markets. Today the whole world is switching to online payments and needless to say that digital currencies like cryptos are the best option to conduct payments in a quick and effective manner. However, some countries find it hard to adopt cryptocurrencies. But still, there are many countries that are believed to have amazing opportunities for developing the crypto ecosystem and one of them is the Philippines.
The landscape for crypto adoption is much more promising in the Philippines compared to many other developed countries. For years, the country has been trying hard to become crypto-friendly and this is why cryptocurrencies were legalized in the country in 2014. However, the most popular crypto, Bitcoin isn’t on the list of the digital currencies that are regulated by the Central Bank of the Philippines, and therefore, after that, the country still had to do a lot in order to fully integrate cryptos into their market.
IMF sees huge potential in the Philippines
Now the Philippines is widely considered as a unique position for crypto adoption. Recently the International Monetary Fund (IMF) has released a report where it’s said that the crypto conditions in the Philippines are very favorable at this moment. According to the report, the Philippines should work on the way to the crypto adoption process because the country attracts more and more customers to the crypto sector. They encourage the officials to take more steps forwards in increasing the usage of blockchain technology because, considering the monetary and financial data, the Philippines has a real potential to become an effective market for these digital assets.
Besides the fact that the customers of the country are more interested to use cryptocurrencies in daily transactions and also the number of crypto exchanges has increased, one more important reason why the Philippines has this much potential for integrating cryptocurrencies is their politically favorable atmosphere. The Philippines has really good relations with the US which is the biggest investor in the country. Specifically, the U.S. Securities and Exchange Commission (SEC) successfully performs its activities in the Philippines and the majority of SEC verified forex companies in the Philippines are US brands, meaning that there is space for further financial cooperation. Usually, the SEC ensures that investors that operate with local forex traders are protected and are responsible for maintaining fair functioning of the securities markets.
However, it’s important to note that SEc is not the only leading investor in the Philippines, and as a result of their unique location, it’s a popular option for foreign investors from China and Japan, both very strong crypto countries. This is why the IMF believes that all it takes is just regulatory clarity for the country to thrive.
The increasing number of crypto exchanges
The increased number of crypto exchanges is another important reason why the Philippines is becoming more crypto-friendly. Recently Bangko Sentral ng Pilipinas, a central bank of the Philippines has announced that they plan to register more crypto exchanges, after already registering 13 of them. Also, the Securities and Exchange Commission has been working hard to develop crypto guidelines. These crypto projects play an important role in boosting the number of crypto exchanges.
Besides, the country is known for its special economic zone where various crypto exchanges from overseas are officially allowed to operate as the authorities gave them a license recently. Specifically, it was revealed in June that 27 crypto exchange operators are licensed from the Cagayan Economic Zone Authority (CEZA) which has been establishing a “Crypto Valley of Asia” for firms that are operating in Cagayan Special Economic Zone. However, they are still not allowed to sell securities to Filipinos or to exchange tokens into fiat money.
Many changes are still yet to come and this is why the Philippines is considered as one of the most optimal places for crypto adoption. However, it’s important to validate the practical need for cryptocurrencies among the local workers. Today a lot more has to be done because still, about 77% of Filipinos don’t have bank accounts because of the inaccessibility of some necessary documents and inadequate funds. But more than 10% of adult residents of the country are turning to cryptocurrency as a payment method.
The need for the adoption of cryptocurrencies has become even more obvious after the lockdown because during this whole time people have been making digital money transactions and everybody realized the advantages of digital currencies. Now even more research is being conducted in order to identify how effective the crypto policies are in the country and what are advantages of traditional payment methods. But one thing is certain - people are already finding it practical to use cryptos despite the doubts and speculation surrounding digital currencies.