INCREASED cryptocurrency-based offerings by Philippine financial institutions could drive growth in Filipinos’ adoption of digital assets, the top official of a global blockchain and Web3 software company said.
“Increased access to regulated crypto investment options — similar to spot Bitcoin ETFs (exchange-traded funds) in the US — could attract more Filipino investors who are hesitant due to concerns about scams and volatility,” Joseph Lubin, Consensys founder and chief executive officer and Ethereum co-founder, said in an e-mail interview.
“If investment houses provide secure, professionally managed crypto funds or ETFs, they could attract Filipinos looking for a more trustworthy and accessible way to invest in digital assets,” he said.
Consensys’ second global opinion survey on crypto and Web3 released in December showed that 96% of Filipino respondents said they were familiar with cryptocurrencies, but only 46% said they fully understand how they work.
Mr. Lubin said this highlights a major knowledge gap.
“As more financial institutions offer crypto investment products and global discussions around regulation and real-world use cases continue, educational efforts and adoption in the Philippines may follow,” he said.
The company’s survey showed that 54% of Filipinos who have heard of cryptocurrencies have purchased them, driven by curiosity. This shows that there is demand for crypto in the country, Mr. Lubin noted.
However, wider adoption has been hampered by concerns about scams, market volatility, and lack of knowledge on where to start, he added.
“While other countries share similar concerns, smarter regulatory frameworks and financial literacy initiatives in markets like Singapore and South Korea may be helping mitigate risks,” he said.
“Overall, while the Philippines has strong crypto interest and ownership, deeper education, security measures, and regulatory clarity are needed to match the adoption levels seen in other leading regional markets.”
Mr. Lubin said the development of a regulatory framework for crypto, blockchain and other Web3 technologies must take into account how fast these are evolving.
“At Consensys, we believe that having a fit-for-purpose regulatory scheme necessitates flexibility to adapt to new developments quickly, which in turn requires close cooperation between regulators and stakeholders throughout the ecosystem. The first step in crafting effective regulatory frameworks is to understand that the risk profile of Web3 is different, demanding a novel regulatory response,” he said.
“To reduce risk, regulators have a choice: undermine the new technology by reintroducing intermediaries so that traditional regulatory schemes can be applied in full, or create new solutions to effectively mitigate blockchain’s novel risks.”
Some examples that the Philippines can look at include the United States, Singapore, and Japan, which have implemented strict security and anti-fraud regulations for crypto exchanges and introduced regulated crypto investment products, Mr. Lubin said.
He added that wider adoption of cryptocurrencies, blockchain and Web3 technologies could improve financial inclusion in the Philippines, as these could provide alternatives to traditional banking tools and services.
“There is also an opportunity in the area of remittances. Blockchain-powered payments can offer faster and cheaper cross-border transactions compared to traditional remittance services, benefiting overseas Filipino workers looking to send money to their families in the country,” Mr. Lubin said.
“Crypto promotes financial inclusion. Blockchain technology enables faster, cheaper, and more secure cross-border transactions compared to traditional remittance services, making it a crucial tool for supporting the high volume of payments sent by Filipino overseas workers.”
With more Filipinos shifting to digital transactions, consumers can benefit from blockchain technologies’ transparency and security, as these eliminate the need for intermediaries, reducing costs as a result, Mr. Lubin added.
“The goal is to create a future where individuals don’t need to trust institutions to access and control their own assets… As awareness of decentralized technologies expands and regulatory frameworks develop, the Philippines and other Southeast Asian economies are well-positioned to benefit from blockchain’s transformative potential.” — Aaron Michael C. Sy
