The traditional financial sector in the Philippines are at a loss due to the monstrous rise in value and usage of cryptocurrency and bitcoin in the south-east Asian country in 2018; this is primarily due to its popularity in the country over the years.
The Cagayan Economic Zone Authority, a body set up by an act of parliament in 1995 for the supervision and development of special economic zone and freeport and authored by senator Pomze Enrile, a native of Cagayan.
CEZA will support 25 cryptocurrency exchanges, in a bid to create an enabling environment for the growth of cryptocurrency in the region and encourage investors and participants to be assured of government support by reducing tax and enact friendly crypto policies.
Raul Lambino, the CEZA chief reiterated his stance on the growth of crypto by emphasizing that investment up to 1million dollars must be made in the area and the building of a new headquarters for the creation of a harmonious relationship with the host
“We do not want the Philippines to be a haven for scammers, even if these scams are happening abroad. That’s why through our probity and integrity check, we can determine if their transactions are just designed to entice unsuspecting people to invest in bitcoin or other crypto coins that’s a fraud” Lambino said.
This landmark step by the Philippine government to put its hat in the ring is due to the increasing demand of cryptocurrency in the Philippines and the regulation just like the traditional financial sector will rid the blockchain industry of bad eggs and boost the confidence of investors in the industry since its recognized and regulated by the government, it is thus a groundbreaking achievement by CEZA as a body.
Though, the economy of the Philippines is the 34th largest in the world, the 13th largest economy in Asia and the 3rd largest in south-east Asia, it is one of the first to officially recognize currency as a viable source of finance thereby legitimizing it in the country, unlike other countries that are still lagging behind.
This foresight started 15 months ago, though the central bank is not openly endorsing bitcoin but will accept it as a viable and legal tender in the country’s financial dealings.
“The Bangko Sentral does not intend to endorse any VC, such as bitcoin as a currency since it is neither issued or guaranteed by a central bank nor backed by any commodity. Rather BSP aims to regulate VC’s when used for delivery of financial services, particularly for payments and remittances, which have a material impact on anti-money laundering (AML) and combating the financing of terrorism (CFT) consumer protection and financial stability” the central bank stated.
Boost for Startups
The policies have increased the chances of firms investing in the Asian market, companies like coins.ph have become one of the biggest cryptocurrency firms in Asia, it has already launched in other countries like Malaysia and Thailand, as coins.th and coins.my respectively.
With more than five million Philippines doing business with it and its application as the top choice in the country, it has crawled its way as the leading financial sector in the country, surpassing the traditional financial industry and other fintech rivals.
With the success of coin.ph in the Philippines and other Asian countries, more firms will come in and create a healthy rivalry in the blockchain industry in the country, paving the way for a new slide in the financial sector in the Philippines, Asia, and the world at large.