A Chinese cryptocurrency firm is planning to help Filipinos abroad to remit cash back home easily and cheaply. Huaren Capital president Jeff Wang told reporters in the Philippines that they were still in talks with potential partners. The firm will launch a digital peso to facilitate transactions.
According to Wang, Bangko Sentral ng Pilipinas (BSP) is among the potential partners. Further, Wang noted that the biggest problem with Filipinos is that most of them lack bank accounts.
A digital peso for everyone
Therefore, they are mostly outside the financial industry. As a result, it is difficult for them to receive remittances from overseas Filipino workers (OFW).
Therefore, the creation of the digital peso will help to bring the unbanked Filipinos into the financial industry.
“We understand in the Philippines, many Filipino citizens don’t have a bank account, and when they transfer funds from one country to another or from one place to another, there’s always a high remittance fee incurred, so we are working towards reducing that kind of cost for the average Filipino citizen,” Wang explained through a translator.
Particularly, the high remittance fee is what Huaren Capital and Jeff Wang will focus on. Interestingly, the new digital currency will enable Filipinos and even other nationals to transfer cash to any destination.
Easier access to financial services
According to Wang, they will soon sign agreements with local banks to facilitate the deliverance of the project.
However, even if the project were to succeed, it will not be the first digital currency in the country. In May, Rizal Commercial Banking Corp launched digital money which promised easier and more secure transactions.
According to the institution, it would store the digital money in digital wallets. Further, users would be able to manage the currency through an app on a smartphone. Dubbed ePeso, users cannot lose the money. Further, bad actors cannot counterfeit it.
“The digitization of the peso aims to help Filipinos have easier access to financial services no matter where they are,” the bank explained in a statement.
Particularly, interested users would need to convert their physical peso into the ePeso any RCBC partner merchants. This includes sari-sari stores.