Filipino Workers Use Stablecoins for Cross-Border Remittances

Filipino overseas workers are increasingly using fiat-backed stablecoins to send money home instead of using traditional remittance channels [1, 2].

This shift represents a move toward decentralized finance to bypass the high fees and slow settlement times associated with legacy banking systems. For a population heavily reliant on foreign income, these digital tools provide a more efficient way to move capital across borders.

Annual remittances sent by Filipinos working overseas total $35 billion ^[1]. While traditional services often charge significant fees, stablecoins promise near-instant settlement and lower costs. Robin Arnfield said fiat currency-based stablecoins are beginning to be used for real-world transactions, such as cross-border remittances and corporate payments ^[2].

The broader market for these assets is substantial, with roughly $350 billion worth of stablecoins circulating in crypto right now ^[3]. However, the utility of these holdings varies. TheStreet article author said nearly all of those circulating stablecoins earn nothing for the people holding them ^[3].

Jeremy Ng, co-founder of OpenEden, said the lack of yield for holders is a problem with a clear fix ^[3]. Despite the growth in the stablecoin market, some analysts argue these assets remain a tiny part of the global payments system today ^[1].

Blockchain networks allow these transactions to occur globally without the need for intermediaries. This removes the reliance on correspondent banking networks, which often slow down the transfer of funds to the Philippines [1, 2].