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Edited by Nathaniel Cajuday
- Bitcoin payments company Pouch.ph has partnered with Strike to help with the final offer to convert BTC into local fiat and then forward the money to the recipient’s bank or mobile money account.
- With this venture, OFWs can now send US dollars to the Philippines and receive funds in Philippine pesos in the recipient’s bank or mobile money account.
To capitalize on the country’s massive remittance industry—one of the largest in the world and currently valued at $12 billion—remittance services at Bitcoin Layer 2 scaling solutions provider Strike recently announced it would expand to the Philippines, adding that it it aims to make international payments faster and cheaper than traditional methods via the Bitcoin blockchain Lightning Network.
According to the solution provider, the Strike remittance service has been available locally since yesterday, 31 January. Through this service, funds sent from abroad can be received as local currency in the beneficiary’s account.
“When you think cross-border, you don’t think super fast, super cheap, and a really good experience… We’re using the Bitcoin Lightning Network under the hood to achieve some things that were never possible before,” Strike founder and CEO Jack Mallers told CoinDesk.
Founded in 2019, the Philippines became the fourth country to receive the Strike system. It is also available in the US (excluding Hawaii, New York, and South Dakota), El Salvador, and Argentina.
As per World Bank data, Philippines is one of the top five global remittance markets in the world. Remittance inflows from overseas Filipino workers (OFW) posted 5.7 percent year-on-year growth to $2.64 billion in November 2022.
“Even a few years ago, Lightning wasn’t growing… The network was only as strong as its participants. Network growth has economies of scale and network effects we’ve never seen before.” Maller added.
For this venture, Strike has partnered with Bitcoin payments company Pouch.ph. Pouch says it helps Strike convert BTC into local fiat and then forwards the money to a beneficiary bank or mobile money account.
“We use Lightning properties under the hood. So our users don’t even know we’re using it. They only send dollars and receive pesos.” Maller added.
Meanwhile, Pouch CEO Ethan Rose emphasized that the main goal of this partnership is to support the World Bank’s Sustainable Development Goals to reduce remittance costs by up to 3% of the total transaction value by 2030.
“The US remittance market to the Philippines is one of the largest in the world, and until now, most Filipino Americans were limited to outdated options,” Rose explained.
Based on World Bank data, the average transaction fee for sending money to the Philippines is 4.57%. Currently, 8.9% of the 1.83 million OFW worldwide are based in the North and South American continents, according to a report by the Philippine Statistics Authority.
“With Pouch’s partnership with Strike, we are revolutionizing the way cross-border payments are made, empowering people to easily send money to their loved ones back home. We are proud to be part of building the world’s most robust payment network for global transactions.” concluded Rose.
Pouch.ph is currently widely used on Boracay Island, one of the top tourist attractions in the Philippines, recently nicknamed “Bitcoin Island”. The place got its name through the efforts of Pouch.ph, which actively promotes the use of Bitcoins on the island. (Read more: Local Crypto Wallet Wants To Turn Boracay Into ‘Bitcoin Island’)
Last year, General Manager of cryptocurrency exchange Binance Philippines branch, Kenneth Stern, stated that blockchain technology might be the answer to simplify the process of sending money to the country. According to him, the exchange aims to “use blockchain technology to advance money freedom not only in the Philippines but worldwide.”
This article was published on BitPinas: BTC as Remittance? Pouch partners with Strike to Offer Faster Remittance Process from US to PH Via BTC Lightning Network
Disclaimer: BitPina articles and their external content are not financial advice. The team serves to deliver independent and impartial news to inform crypto Philippines and beyond.
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