Cryptocurrency in the Philippines amidst 2018 Bitcoins' Crash
Cryptocurrency, at first glance, is a wide-ranging term that requires the need to acquire deeper understanding. Accordingly, it is a digital currency created and stored electronically. Meanwhile, there has been a news in the year 2018, reporting the crash of Bitcoin, a best known cryptography. Just last year as well, the news of welcoming cryptocurrency was like a wildfire that spread across the country, 2 years after Bitcoins' downturn. Now, how come and why did the Philippines managed to approve cryptocurrencies after the incident? What is the role of the Filipinos to bringing back the country's trust to any cryptocurrency? And, how does this scenario reflects the type of government Philippines has?
Before we get to know all the answers to these questions, it is good knowing that the Philippines does not shut its door to any sorts of cryptocurrency, and has actually embraced it. For example, PDAX or Philippine Digital Asset Exchange is the Philippine's homegrown cryptocurrency exchange that empowers Filipinos to trade cryptocurrencies backed with dedicated local support.³ Also, in the summer of 2020, the Philippines central bank approved 16 cryptocurrencies exchanges, paving the way for a true boom in the markets.⁵ In fact, it is estimated that over 4.3 million people, 4.0% of Philippines' total population, currently own cryptocurrency.⁴ As a result, the country also obtained the third-highest uptake of crypto globally and is one of the world’s fastest adopters of cryptocurrency.⁴ In addition, according to data, the current situation like the COVID-19 pandemic, has become a driving force of the trend, with Filipinos releasing the value of crypto as an investment and income generating currency.¹
Now, how come and why did the Philippines manage to approve cryptocurrencies after the incident?
Cryptocurrency, with its most notably standard bearer Bitcoin, became an investment vehicle in much of the world about a decade ago. But a 70% drop in Bitcoin prices last year weakened enthusiasm for crypto overall. However, the Philippines, despite a downturn last year in the value of the virtual currencies, due to growing popular demand and lenience among regulators.⁶
"These exchanges feed into the development of a fast-growing financial technology, or fintech sector in the Philippines", said Jonathan Ravelas, chief market strategist with Banco de Oro UniBank in Metro Manila.
What is the role of the Filipinos to bringing back the country's trust to any cryptocurrency?
The Filipinos became one of the main reasons why the government reconsidered introducing the cryptography in the Philippines once more. On the other hand, Filipinos generally prefer more traditional investments such as equities. Also, seven in 10 Filipinos have no bank account, thus, virtual currency gives those consumers a new option for making payments in an easy and accessible way.²
How does this scenario reflect the type of government Philippines has?
This scenario only portrays how considerate the Philippine government is, to both the people and crypto. To people, because they did not disregard those people who once used to cryptocurrency, and the benefits it can give to the people. And to the cryptography, because, it did not invalidate the good side of it yet rather, was given the chance to perform its goal.
The central bank and Securities and Exchange Commission are "working towards regulating cryptocurrencies to protect the Filipino people," domestic Bitcoin and blockchain news website Bitpinas said in November. "This is a positive step towards adoption as this move will give users security and confidence in dealing with it."²
In conclusion, we are safe to say that cryptocurrency and Philippines have a good relationship amidst Bitcoins' crash. The Philippine government was considerate enough to weigh things equally, like considering the people and the cryptocurrency. Consequently, this does not only present the country's relationship with cryptocurrencies, but it zooms out the openness and the healthy approach of the government at welcoming it in the country.
References:
1.) England, J. (2021, March 23). Cryptocurrency to become mainstream in the Philippines. Fintech. Retrieved at: https://fintechmagazine.com/digital-payments/cryptocurrency-become-mainstream-philippines
2.) Jennings, R. (2019, April 12). Why Cryptocurrency Is Gaining in Philippines Despite 2018 Bitcoin Crash. South Central Asia. Retrieved from: https://www.google.com/amp/s/www.voanews.com/amp/why-cryptocurrency-is-gaining-in-philippines-despite-2018-bitcoin-crash/4873275.html
3.) PDAX. (n.d). Buy and Sell Bitcoin and Crypto Directly with PHP!. Retrieved at: https://pdax.ph/
4.) Singapore Fintech Association. (n.d). How many crypto owners in Philippines?. Retrieved at : https://triple-a.io/crypto-ownership-philippines/
5.) Tuwinir, J. (2021, December 10). Buy Crypto & Bitcoin in Philippines. Buy Bitcoin Worldwide. Retrieved at: https://www.buybitcoinworldwide.com/philippines/
