Virtual currency transactions soar

MANILA, Philippines — Virtual currency transactions skyrocketed in the first semester amid the shift in consumer behavior due to the COVID-19 pandemic, the Bangko Sentral ng Pilipinas said.

BSP Governor Benjamin Diokno said in a virtual press briefing the value of virtual currency transactions tripled to P59 billion from January to June as volume soared to 4.3 billion from an average of only six million annually.

“This suggests the growing public acceptance of virtual currencies to facilitate payments, remittances, and other virtual currencies related transactions,” Diokno said.

Cryptocurrency is a type of virtual currency that uses cryptography – a method of storing and transmitting data in unreadable form so that only the intended receivers can read and process it. Bitcoin is the first and most popular cryptocurrency to date, introduced in 2009.

When virtual currencies were starting to grow in the Philippine market, the BSP issued an advisory in 2014 to inform the public of the features, benefits and attendant risks when dealing with virtual currencies.

In 2017, the regulator established the formal regulatory framework for virtual currency exchanges or VCE following the rise in the use of virtual currencies for payments and remittances in the country.

The BSP earlier cautioned banks and financial institutions in dealing with money service businesses particularly those involved in virtual currencies including bitcoins.

“This also serves as a reminder to the BSP to maintain an active oversight in this space,” Diokno added.