Stablecoins Take Flight in Emerging Markets: Coins.ph Leads the Charge

Wei Zhou, former CFO of Binance and current CEO of Coins.ph, has made significant strides in expanding stablecoin adoption across emerging markets.

He likens the financial system to a shipping metaphor: money moves by land (banks), sea (e-wallets), or air (blockchains). The US dollar was the first currency to 'board the aircraft,' leaving other currencies with a choice between building their own runway or watching their citizens use American dollars.

Coin.ph, which Zhou acquired in 2022, serves as the 'port' where dollar stablecoins land and get converted into pesos. In the Philippines, where Coins.ph operates under the Bangko Sentral ng Pilipinas-licensed exchange and e-wallet, users can deposit fiat, store it with the company, and use it to buy stablecoins or other cryptocurrencies.

The Philippines has seen a significant increase in financial inclusion, with the share of Filipino adults with a financial account jumping from 29% to 56% between 2019 and 2021, the fastest gain recorded by the central bank. Zhou attributes this growth to the rise of digital wallets and stablecoins, which have enabled the unbanked to access financial services.

In emerging markets like India and Brazil, regulation is a significant challenge. While some countries have established licensing regimes, others remain in a gray area. Zhou notes that even within emerging markets, there is a sliding scale of adoption, with some countries being more restrictive than others.

Coin.ph has built a liquid market for stablecoins, which is essential for cross-border payments in emerging markets. The company's pricing for USDT and USDC to peso is competitive with bank mid-market rates, making it an attractive option for payment processors and remittance companies.