How do Filipinos Perceive Crypto Trading?
According to a survey, the Philippines and Vietnam recently recorded to have the third and second highest rates of cryptocurrency use. Remittance payments were able to play a role in cryptocurrency’s widespread use. As per bitcoin.com, the Philippines’ Central Bank was able to approve some crypto exchanges so they can operate as one of the country’s “transfer and remittance companies.” The government has also meddled in cryptocurrency by setting up bonds.ph, a blockchain app, wherein Unionbank worked on distributing the government bonds.
Unionbank has even worked on installing a Bitcoin ATM in Makati, Metro Manila, to show that cryptocurrencies are now slowly entering the country in the mainstream. Even if most Filipinos are aware of cryptocurrencies, they are holding remained low because of these digital assets’ perceived risks.
According to a report that the OECD or Organization for Economic Cooperation and Development published, “Cryptoassets in Asia: Consumer attitudes, behaviours and experiences,” there has been a survey that got conducted in 2019. Around 74% of the survey respondents have an awareness of cryptocurrencies. However, the awareness level is varied. Seventeen per cent of them are very well. Twenty per cent are aware “to some extent,” while 27% are “not very well” aware of cryptocurrency.
Aside from the Philippines, the other countries covered are Vietnam and Malaysia. However, only a minimal 38% of the respondents knew about the ICOs or initial coin offerings that were a form of crowdfunding that people used for cryptocurrencies.
Among the Filipino respondents, just 32% of them declared that they own crypto assets. Only 14% of these people are ICO investors. In the Philippines, a slight majority or 51% of people who own cryptocurrency are aged 45 to 54. More men own crypto assets compared to women. The survey also shows that those who hold cryptocurrencies have a job and master’s or doctorate degrees.
There is also a high intention to invest in cryptocurrencies among the Filipinos, as it is 53% of the population. However, ICOs may not be as appealing as just 25% of the respondents have expressed interest.
The main reason why Filipinos are getting into cryptocurrencies is because of the curiosity to have more information regarding this asset. Forty per cent of the respondents have expressed this. Thirty-nine per cent considers cryptocurrencies as a great way to pay for their online purchases. Around thirty-six per cent believes that it can help them earn money immediately.
Filipinos found it appealing when it comes to ICOs, as 38% of the respondents believed that it could help them quickly earn money. Thirty-one per cent considered this as a retirement fund or long-term investment—people who are interested to know more about the ICOs account for thirty-one per cent of the respondents.
Around forty-three per cent of the Filipino respondents were able to use an online platform to buy cryptocurrencies. Thirty-seven per cent have worked on “mining” them, while 27% received crypto as payment for services they rendered or goods they sold.
When it comes to buying cryptocurrencies, around 43% of the Filipino respondents used the funds in their savings accounts, while 47% had the money shelled out from their monthly budget.
Before these Filipinos invested in ICOs or bought cryptocurrencies, 72% sought advice from professional financial advisers or accountants and experts in related technologies like blockchain technology. Around 55% of them asked for advice from their friends and family members.
When it comes to the appetite for risk, 62% of the respondents declared that they could afford to lose the money they invested in crypto or digital currencies. In the Philippines, the respondents who have cryptocurrencies have slightly more exposure to risks as 15% of them have around 50% or more of their portfolio invested in cryptocurrencies.
The Philippines Emerges to Become the New Bitcoin Hub
Even if Bitcoin got welcomed as a completely new concept in trading, investment, and financial transactions, its value is continuously increasing. The Philippines has steadily warmed up to Bitcoin. Why did cryptocurrency steadily gain ground in the Philippines?
The Numerous Crypto Exchanges in the Philippines
In the previous years, there were so many heated discussions that cryptocurrencies generated. Critics have worried about how they can affect the ‘real economy.’ Those who avidly support it have celebrated a new paradigm. There has been no other altcoin that was able to make the headlines like Bitcoin. Bitcoin was the cryptocurrency that started everything. Last 2017, Bitcoin experienced a wild ride when its value went from less than $1000 last January 2017 to an excess of $11,000 by November of the same year. The prices went down by around $9,000 for some time, but it eventually skyrocketed to a high value of $15,000 and more by the start of December. By 2018, its value dipped, but it has significantly risen to it’s all-time high this 2021.
The Philippines was able to emerge gradually as a cryptocurrency have. Even as significant markets in the Southeast and East Asian region, like China, have cracked down on Bitcoin trading, authorise numerous exchanges that are not less than 29 in the country. Philippines’ regulatory authorities
Why Did Bitcoin Gain Ground?
Because of this, crypto coins experienced a welcoming ground even if they suffered a drop in value by 70% last 2018. There are various factors as to why it was successful. Since many Filipinos (around 70%) don’t have a bank account, digital currencies became a highly appealing alternative. The trade of digital coins could evolve out of networks based on the web into various forms of platforms for social trading. They are similar to earlier forms of online communities that have provided a platform so that traders can have their style developed or test the waters. Initially, after the first cryptocurrency exchanges got set up, it was in an unregulated landscape that became attractive for many people.
Despite that setting, digital coins like Bitcoin could emerge as an exciting path for tech-savvy Filipinos, particularly those in the younger generations. Startup businesses became eager to have Bitcoin used for their ICOs or initial coin offerings whenever they searched for funding. Because of that, the cryptocurrency market was able to take off. The government, consumers, and private companies were not the only ones who embraced crypto. The financial industry also became involved in it as the Union Bank of the Philippines announced that they would have a Bitcoin ATM installed in one of their branches. Because of the cryptocurrency market’s investment, there has been a significant boost to the country’s fintech industry. As the trend expands, the Philippines may eventually become the next cryptocurrency hub in Southeast Asia as it attracts a broader interest in crypto in the area.
Learn About Crypto Trading with Binance
It can now be possible for Filipino Binance users to sell and buy ETH, BTC, BNB, USDT, EOS, and BUSD using the Philippine Peso. Binance has a P2P platform that allows Filipinos to do this without any transaction fees. Integrating this will enable the user to trade crypto in their preferred prices and payment modes. They can even have their crypto assets transferred to a Binance wallet without an added cost.
Because of the platform's zero transaction fees, it offers an escrow service. It aims to ensure that all of the cryptos will go to the users' wallets. Binance has a P2P platform that lets users gain more access to various financial services. Included here are spot, margin, lending, and futures trading of Binance.com.
Since its launch in October 2019, Binance's P2P platform has supported approximately 31 fiat currencies. It was also able to process trades of more than $1 billion. For their Global P2P Merchants Program, the company now actively searches for local merchants with reliable crypto and fiat access. Here, verified merchants enjoy a lot of benefits. It includes exclusive support for customers, VIP discounts, ad transactions and postings, and security deposits without any fees.
Start learning about Binance P2P trading by trading through Binance now.
The second and third highest rates of cryptocurrency use in the survey were recorded in Vietnam and the Philippines, respectively. Again, remittance payments play a role in the widespread use of cryptocurrency. According to bitcoin.com, the Philippines' Central Bank has approved several crypto exchanges to operate as "remittance and transfer companies" in the country. The government itself is already meddling in cryptocurrency by setting up blockchain app bonds.ph with Unionbank to distribute government bonds. Unionbank has also installed a Bitcoin ATM in Makati (Metro Manila), showing how cryptocurrencies are slowly entering the mainstream in the country.