Challenges in Bitcoin Adoption in the Philippines

In recent years, the adoption of Bitcoin and other cryptocurrencies has been spreading globally, and the Philippines is no exception. A significant number of businesses in the country now accept Bitcoin as a form of payment, and the government has been working on creating a regulatory framework to govern the use of cryptocurrency.

Despite this progress, there are still challenges that need to be overcome for Bitcoin to gain widespread adoption in the Philippines. In a recent interview with CoinGeek, Miguel Cuneta, the co-founder and Chief Strategy Officer of Satoshi Citadel Industries (SCI), shared some insights on these challenges and how his company is working to overcome them.

One of the primary challenges that Cuneta has observed is the lack of awareness and education about Bitcoin. Many people in the Philippines are still unfamiliar with the technology and how it works. This lack of understanding makes it challenging for businesses to accept Bitcoin as a payment method since customers may not know how to use it or be reluctant to trust it.

To address this issue, SCI has been working to educate businesses and consumers about cryptocurrency through various initiatives. One such initiative is Bitmarket.ph, a platform that enables merchants to accept Bitcoin payments and provides training and support on cryptocurrency use.

Another challenge that Cuneta identified is the volatility of Bitcoin’s price. The value of Bitcoin can fluctuate rapidly, making it difficult for businesses to price their products and services accurately. This volatility can also discourage consumers from using Bitcoin since they may be hesitant to spend it if they believe its value may increase in the future.

To mitigate this issue, SCI has implemented a system that automatically converts Bitcoin to Philippine pesos when a payment is received. This way, businesses can price their products and services in pesos, and consumers can pay in Bitcoin without having to worry about fluctuations in value.

Another challenge facing Bitcoin adoption in the Philippines is regulatory uncertainty. While the government has taken steps to regulate cryptocurrency, the regulations are still evolving, and there is some ambiguity surrounding the legality of certain aspects of cryptocurrency use. This uncertainty can be a barrier to entry for businesses that may be hesitant to adopt Bitcoin without clear regulations in place.

To address this issue, SCI works closely with regulators to ensure compliance with any relevant regulations. The company also advocates for clear and favorable regulatory frameworks for cryptocurrency use in the Philippines.

One issue that Cuneta highlighted that is specific to the Philippines is the lack of access to banking services for many Filipinos. According to Cuneta, around 70% of Filipinos are unbanked, meaning they do not have access to traditional banking services. This lack of banking access can make it challenging for many people to use Bitcoin since they may not have a way to convert it to fiat currency.

To address this issue, SCI has developed a Bitcoin ATM network called Rebit.ph. These ATMs allow users to purchase Bitcoin using cash and can also convert Bitcoin to pesos. This network provides a new way for unbanked Filipinos to access cryptocurrency and participate in the modern economy.

Despite these challenges, Cuneta is optimistic about the future of Bitcoin adoption in the Philippines. He believes that as more businesses accept Bitcoin, the technology will become more mainstream and familiar to consumers. He also believes that the government’s regulatory efforts will help create a more stable and favorable environment for cryptocurrency use in the country.

Overall, the challenges facing Bitcoin adoption in the Philippines are complex and multifaceted. However, companies like SCI are working to develop solutions and promote cryptocurrency education and adoption. As Bitcoin and other cryptocurrencies continue to evolve, it will be interesting to see how the challenges of adoption are addressed and overcome.