Bitcoin for 10 million in the Philippines – Bitcoin Magazine
This is an opinion editorial by Jiro Reyes, CEO of Bitskwela, a Philippines-based education company focused on accelerating the country’s regional Bitcoin adoption.
Corruption, poverty and economic exclusion. These are just some of the many problems that Bitcoin was created to solve. But many countries to this day still have most of their citizens fighting for their lives, or rather, fighting these problems for the rest of their lives.
One such nation to note would be the Philippines, a developing country in Southeast Asia.
The need for Bitcoin in the Philippines
Bitcoin is often said to offer a solution to various economic problems, and there are many that plague the Philippines. It has a criminally high statistic of over a fifth of the population (23.7%) living below the poverty line. Furthermore, the country has 10 million citizens who remain unbanked, and it also ranks 117th out of the 180 most corrupt countries, which poses problems when relying on centralized authorities to make decisions.
Not surprisingly, it has not been spared from the interconnected and ever-growing economic crises around the world today. Similar to the United States, the COVID-19 pandemic led the Philippines to impose heavy lockdowns that lasted much longer than in most other countries. As a result, the country’s GDP fell by 9.6% and the economy has yet to recover. Inflation in the country has also become an issue, with quantitative easing and supply chain problems following the pandemic. Filipinos’ savings are unable to keep up with the prices of goods, and this is further exacerbated by the wide range of fiat currencies depreciating against the dollar due to interest rate hikes by the Federal Reserve System. With the majority of Filipino citizens struggling with a minimum wage of 570 pesos, or $9.65 per day, it becomes imperative to find a better means of achieving financial security. Enter Bitcoin.
How Bitcoin is solving problems in the Philippines
With Bitcoin being the most open source, secure, immutable and decentralized form of money, the majority of financial problems facing Filipinos can be solved through its adoption. First, it would help the 10 million unbanked Filipinos become their own banks. There would no longer be a need for tedious applications or the collection of various IDs and documents. Anyone can save and send money using a phone and internet connection. Final inclusion is provided with Bitcoin.
Bitcoin transactions also help reduce both corruption, which is rampant in the Philippines, and general criminal activity. Since all transactions are publicly visible on the blockchain, it becomes in some ways easier to track suspicious activity and track down bad actors in the system. The fact that Bitcoin is decentralized also ensures that no government or bank controls it, nor can any third party censor or prevent transactions from going through.
Even inflation and the weakening purchasing power of the Philippine peso can be fixed with Bitcoin. Due to having a fixed supply of 21 million, it is certain that no more bitcoin than that amount will ever exist, making it deflationary. Bitcoin will not lose value over time just because of some government printing more or a random discovery of a gold mine. It is the perfect store of value and inflation hedge to protect one’s purchasing power over time.
Solving problems like these shows how Bitcoin can help ordinary people who are struggling, not just in the Philippines, but around the world.
The need for better Bitcoin education
Despite the fact that Bitcoin is able to solve many problems in the Philippines, it is still necessary to pair its adoption with appropriate education. This is to guarantee that the people using it are able to maximize Bitcoin to its full potential and avoid financial harm.
For example, the Philippines has had several scams in the past that invoked the promises of bitcoin to lure victims. Many people probably fell for these scams and may now have a deep distrust of Bitcoin and cryptocurrency as a whole.
In my experience, there is also a lack of a “research” mentality among Filipinos. They often just want to buy what friends and family say without understanding it. This can also come with an expectation of quick gains all the time and a lack of HODLing. If they don’t really know what they invested in, they can panic sell something like bitcoin at a huge loss when the price turns against them. On the other end of the spectrum, I fear that the majority of Filipinos won’t even invest to begin with, be it with bitcoin or anything else, because of the lack of an “investment mindset” in the country. Much will miss out on working towards economic security and freedom, as the concepts of fiat depreciation and inflation are foreign to them.
Finally, there is also the simple language barrier of most Bitcoin education being offered in English and not in the native language of Filipinos. This is also accompanied by the fact that there is a lot of technical jargon in learning about blockchain technology. Although some educational platforms are already tackling this in the country, it is still a relevant issue to highlight.
This notion of needing adequate education is not only limited to the Philippines, but also extends to all other countries that Bitcoin will eventually penetrate. Each country will have its own unique problems in learning about Bitcoin, so it becomes important to identify each problem per country and then tackle them accordingly.
Interest in Bitcoin and the opportunities it offers
Nevertheless, there are many opportunities for the development and adoption of Bitcoin. Although countries like the Philippines will inevitably face some obstacles in Bitcoin education, most citizens become quite accepting and eager to learn once they are educated. The Philippines in particular shows a lot of promise.
When it comes to opportunities, the Filipino people are avid internet users and the country is called the “social media capital” of the world. Inevitably, this has also led to the nation’s relatively high Bitcoin and cryptocurrency adoption. GWI’s global survey revealed that the Philippines was ranked the second country in cryptocurrency ownership, and another survey showed that bitcoin was the most popular cryptocurrency in the country, with 37.8% of the 12 million cryptocurrency owners there holding bitcoin in the wallet. The governor of the Bangko Sentral ng Pilipinas, the country’s central bank, has indicated that there are no plans there to ban the use of cryptocurrencies. Bitcoin education is also a growing trend there.
Many other countries, particularly developing countries, will show similar promise. Realizing this promise simply requires an adequate understanding of economic problems and how to utilize mass education. The case of the Philippines shows how, despite many disadvantages in a government or economy, Bitcoin can still alleviate some problems for ordinary citizens. Bitcoin shows that although there will be obstacles in the education process, breaking through to the people will bring enormous opportunities.
This is a guest post by Jiro Reyes. Opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
