Circle is renowned for its stablecoin, USDC (USD Coin), which is a cryptocurrency pegged to the US dollar. USDC offers the advantages of blockchain technology, such as fast and low-cost cross-border transactions, combined with the stability of a fiat currency. This makes it an ideal choice for remittances.
The partnership with the fintech company in the Philippines seeks to create a seamless and efficient remittance system using USDC. This system will allow overseas Filipino workers and their families to send and receive remittances quickly and affordably, with reduced fees and enhanced transparency. The goal is to provide a cost-effective alternative to traditional remittance services that are often burdened by intermediaries and high exchange rate markups.
By integrating USDC into the remittance process, the partnership aims to eliminate the need for multiple intermediaries and associated fees. This will result in more of the sender’s money reaching the recipient, improving the overall value of remittances for Filipino families.
In addition to cost savings, the blockchain-based remittance solution is expected to significantly reduce the time it takes for funds to be transferred. Traditional remittance services can take days to complete transactions, while blockchain technology allows for near-instant settlements. This means that funds sent by overseas workers can be available to their families in the Philippines almost immediately, providing a substantial improvement in the financial well-being of the recipients.
The transparency of blockchain technology also ensures that senders and recipients have visibility into the entire transaction process, from initiation to completion. This transparency reduces the risk of fraud and provides peace of mind to both parties involved.