Cryptocurrency to become mainstream in the Philippines
The Philippines is one of the world’s fastest adopters of cryptocurrency, new reports show. According to data, the pandemic has fuelled the trend, with Filipinos releasing the value of crypto as an investment and income generating currency.
A rise in crypto-friendly technology in the country has also facilitated it’s uptake, which means the Philippines is now on a par with Vietnam and Nigeria.
Reports by consensus experts from the Bangko Sentral ng Pilipinas (BSP) earlier this month show that gaming rewards, BTC, ATM networks and rural banking integration are ‘reliable early indicators’ for the upsurge that makes crypto growth in the Philippines the world’s third-fastest growing sector.
The The Fintech Philippines Association and European Chamber of Commerce of the Philippines have reported similar findings.
Bitcoin first became popular in the Philippines 2017, when its value skyrocketed from $1,000 to over $19,000 in the space of a few months. Since then, BSP has installed a reliable platform that protects crypto customers and also encourages bitcoin uptake, which is still in a nascent stage.
As of December 2020, BSP has also opened up channels with 17 virtual currency exchanges that are industry compliant.
Crypto currency adoption
Speaking about the swift adoption of cryptocurrency, Nichel Gaba, CEO and f ounder of Philippine Assets and Digital Exchange, said, “Between December 2020 and today, something happened to put bitcoin and crypto into a sace where even traditional portfolio managers need to consider them. We are living in interesting times in crypto,” he added.
Gaba pointed out the fintech industry in the Philippines was still at an evolving stage, and said that although crypto-supporting platforms were effective, the industry in general required more support from government and regulatory institutions.
He added that the mainstream position of cryptocurrency was close to fruition in the Philippines due to the swiftly evolving technological landscape which has seen PDAX enjoy a 70-fold increase in transactions and a 15-fold customer increase in less than a year.
BSP also recently launched a new security framework that protects cryptocurrency from being used in money laundering. Speaking about the changes, Melchor Plabasan, Technology Ris k and Innovation Supervision Director of BSP, pointed out that the use of crypto has revolutionised remittances and payments as well as opening up new fundraising opportunities.
He said, “Regulations are designed to protect the investing public. We have expanded their scope and strengthened the rules on consumer protection and cybersecurity controls.”
Nymbus enters strategic partnership with Plaid
Nymbus, a leading provider of banking technology solutions, has partnered with Plaid, a data network powering the digital financial ecosystem, to more instantly authenticate and fund customer bank accounts for financial institutions.
This new integration will allow Nymbus bank and credit union clients to securely onboard new users in a matter of seconds, which in turn translates to more active and engaged banking experiences. Plaid’s data network enables consumers to connect their financial accounts at over 11,000 institutions globally to more than 5,000 digital finance apps, including leading payments, investing, and budgeting tools.
What are the benefits of the integration?
Benefits of the Nymbus and Plaid integration for financial institution customers include:
- Improve user identity verification and reduce fraud.
- Instantly authenticate and link members’ bank accounts.
- Streamline ACH transfers between any bank or credit union in the US.
- Access and analyse comprehensive transaction data.
- Validate real-time account balances to protect against overdraft and enable account pre-funding.
“As more consumers than ever before rely on digital finances for their everyday lives, financial institutions need to meet their customers where they are while supporting safe and reliable money management experiences,” said Sarah Howell, Chief Alliance Officer at Nymbus. “Our expanding network of partners are important contributors to Nymbus’ combined portfolio of the technology, people and process available to quickly innovate with new routes to market and revenue streams.”
Continuous growth and expanding partnerships
Founded in 2015, Nymbus has continued to grow. Most recently the company has closed a new round of financing led by the Curql Fund. The US$5 million investment will be used towards Nymbus CUSO and accelerate a shared commitment to breakthrough technology for ensuring continued growth and stability for the credit union community.
Nymbus CUSO was founded in March 2021 to help break through barriers to growth, and its mission is to connect credit unions with trusted fintech offerings that both simplify technology delivery and enable new digital revenue opportunities.
Last year Plaid set a goal to move 75% of its traffic to APIs by the close of 2021, calling it “one of our top priorities as the industry moves full-steam ahead toward a fully digital financial system.”
Recently it has announced an open finance partnership with Capital One, a digital finance innovator, and the successful completion of its migration to the Capital One API. They have also completed or have in-motion data access agreements with major US financial institutions, including U.S. Bank, JPMorgan Chase, Wells Fargo, and others.