IMF Suggest Philippines as a Key Player in Cryptocurrency Future
The International Monetary Fund (IMF) released a Technical Assistance Report paper on the 30th of December 2019 indicating that the Philippines will be one of the key players in the growth of cryptocurrency, as according to the Business Inquirer.
The IMF has also advised the Bangko Sentral ng Philipinas (BSP), the Philippine’s central bank to explore the possibility of collecting additional transactional data on crypto exchanges for its macroeconomic analysis, particularly on the international financial flows using crypto assets. IMF believes that the data would be more valuable if it were broken down to reveal the parties involved in transactions between individuals, financial and non-financial corporations to further study its macroeconomic use.
IMF’s view of the Philippines being a major crypto market should be expected as the country was among the first few to come up with a framework to regulate and encourages the adoption of blockchain and cryptocurrencies. In 2017, the central bank started licensing companies wanting to provide services using cryptocurrency in the Philippines, starting with VHCEx.
Image Source: Bitcoin.com
At this point in time, there have been 13 cryptocurrency exchanges that the BSP have licensed which includes VHCEx, under Virtual Currency Philippines Inc (VCPI). On top of that, 37 other types of exchanges were licensed by the government-owned Cagayan Economic Zone Authority that operates as a separate customs territory, with different incentives for foreign companies registering their business there.
Besides cryptocurrency companies, established financial institutions in the country are also getting involved with the growth trend in cryptocurrency. The largest bank in Philippines, UnionBank was the first financial institution to launch its own cryptocurrency, PHX pegged to the Philippine peso. This came after several other cryptocurrency related ventures by the bank which includes installing a Bitcoin ATM called The Ark, in one of its branches.
Given the country’s strong tendency for adoption of cryptocurrency and nurtured growth by the government authorities, Philippines is continuously strategically placing themselves as a strong key player to lead the cryptocurrency world market for advancement of the technology.