GCash, the Philippines’ leading digital money app, announced support for Circle’s USD Coin (USDC). Users in the country can now hold and transact with the stablecoin.

This marks a major step in integrating stablecoins with everyday transactions in the country.

Circle’s USDC Ventures Into the Philippines Market

Local media revealed the integration, noting that GCash users in the Philippines can buy, hold, and send USDC through GCrypto, the app’s cryptocurrency platform. GCash’s Group Head of Wealth Management, Arjun Varma, says this integration presents a game-changer for financial inclusion in the Philippines.

“By offering easy access to digital dollars, we empower our users with a stable and globally recognized financial asset,” local media reported, citing Varma.

Unlike volatile cryptos like Bitcoin (BTC) and Ethereum (ETH), USDC is a stablecoin pegged to the US dollar. This makes it a more reliable digital asset for payments and savings.

The move is expected to help millions of Filipinos bypass traditional banking infrastructure, which is reportedly slow, expensive, and inaccessible to many.

“Philippines payments are absolutely horrible. Some of the worst rails and ramps in the world,” one user remarked.

With USDC reserves held at regulated financial institutions, they undergo regular third-party attestations to ensure transparency. Circle CEO Jeremy Allaire highlighted the scale of this expansion, citing an opportunity for growth in the firm’s stablecoin network.

“The largest and most widely used digital money app in the Philippines, GCash, just announced support for USDC in their mobile wallet. Another ~100m users being brought into Circle’s stablecoin network,” he expressed.

Meanwhile, this move signals Circle’s outward expansion as competition in the stablecoin market intensifies. Major traditional finance institutions, including the Bank of America (BoA), are now eyeing stablecoin adoption.

This poses competition for stablecoin issuers like Tether and Circle as established banks look to enter the space with their stablecoin offerings. As financial giants move in, fintech companies like GCash offer themselves as potential avenues for expansion to stablecoin issuers.

“GCash’s USDC move puts a global digital dollar in 100 million Filipino hands. Stablecoins might just leapfrog banks in places like this,” another user added.

Despite the optimism, transparency remains a significant concern for stablecoin adoption. While the blockchain’s openness is great for security and trust, it is not always ideal for everyday payments.

“Crypto payments failed for one small reason that needs fixing: When sending USDC, let the recipient see the transaction but not your address. Nobody wants to reveal their wallet for a 10 USDC beer payment,” DeFi researcher Ignas said recently.  

While GCash’s USDC integration offers convenience, calls for stablecoin transparency, like revealing wallet addresses for USDC transactions, may deter adoption even for Philippine users.

Still, GCash’s move reflects a broader trend of digital wallets embracing blockchain-based finance.