New bitcoin exchange offers PHL expats a new way to send money home

BuyBitcoin.ph, a new online bitcoin exchange launched on Thursday, offers an alternative method of sending money to the Philippines, according to bitcoin website CoinDesk. 
 

Bitcoin is a virtual currency that can be used to directly purchase items or services online. According to CoinDesk, bitcoin is "the first example of a growing category of money known as cryptocurrency."

 

The payments are made directly from one person to another without passing through a central bank or clearing house.

 

Bitcoins can also be traded for other currencies and can be used to send remittances from Filipino expats around the world, a market that BuyBitcoin.ph is targetting.

By eliminating the middle man, BuyBitcoin.ph offers a cheaper and faster alternative to banks or money transfer companies.

 

To purchase bitcoins, one can deposit money in any of the 800 branches of the Bank of the Philippine Islands (BPI) in the country. As of this post, one bitcoin is worth P39,390. 

 

Co-founder Lasse Olesen told TechInAsia that “cash payments are the most secure channel” at the moment, but they are looking to add more payment avenues within the year. 

 

He also said bitcoin might become integrated with other platforms such as e-commerce sites and online freelance marketplaces.

 

“Many online transactions here are being made by cash deposits in physical locations, and Bitcoin is cash for the Internet, so it’s a good fit. [It’s also] incredibly empowering for the self-employed freelancer or merchant. It gives you instant access to a global market where you can receive payments practically for free and, if you want, exchange to cash locally,” he said.

 

The increasing use of bitcoins worldwide has already led to controversy in some parts of Asia.

 

In China and India, bitcoins experienced trading issues due to government interference, the TechInAsia article said. The Chinese government said bitcoin cannot be used as currency, while India warned its people of the new currency's risks.

 

In contrast, Singapore's central bank decided not to intervene in the use of bitcoin for transactions in goods and services.

 

In the Philippines, bitcoin had started to gain popularity even before the launch of BuyBitcoin.ph. Proof are the more than 500 likes on the Bitcoin Philippines fan page  and several discussions on Reddit.

 

According to an earlier report, the Philippines is the third-largest recipient of remittances trailing China and India.

 

The Asian Development Bank also said in October 2013 that remittances are among the main drivers of Philippine economic growth. — Kim Luces/JDS, GMA News