Top Digital Currencies Shaping Financial Trends in the Philippines
This article explores the leading cryptocurrencies popular in the Philippines, highlighting Bitcoin, Ethereum, Binance Coin, and Shiba Inu. It explains their significance, features, and how they influence the local financial scene, especially given the country's large unbanked population. For investors interested in digital currencies, understanding these key assets provides valuable insight into the Philippines’ rapidly evolving crypto landscape.
Leading Digital Currencies in the Philippines
Cryptocurrencies are rapidly gaining popularity as a popular investment option worldwide. These digital assets facilitate online transactions for goods and services, operating exclusively within digital platforms. The variety of cryptocurrencies available globally is vast, all existing solely in digital form on computer networks. If you're based in the Philippines and considering investing, understanding the local crypto landscape is essential.
The Philippines is among the fastest adopters of digital currencies worldwide, with around 40% of its population owning some form of cryptocurrency. Many holders are young, some earning tokens through virtual gaming activities.
With approximately 75% of Filipinos unbanked, cryptocurrencies and blockchain technologies are bridging financial gaps. In 2019, Union Bank launched PHX, the first Philippine cryptocurrency exchange. Backed 1:1 to the Philippine peso, PHX offers a stable store of value.
Bitcoin (BTC)
Bitcoin, created in 2009 by the pseudonymous Satoshi Nakamoto, remains highly popular and sparked the creation of many alternative coins. It offers lower transaction fees compared to traditional banking methods, thanks to its decentralized nature. Bitcoin's ledger is accessible publicly but encrypted, with transactions verified through mining. As the largest cryptocurrency globally, Bitcoin is known for its extreme market volatility.
Ethereum (ETH)
Ethereum is a blockchain platform known for its native cryptocurrency, Ether. As of early 2022, it's the second-largest digital currency after Bitcoin. Developed by Vitalik Buterin in 2013 and launched in 2015, Ethereum allows the creation of smart contracts and decentralized apps (dApps). It aims to provide accessible financial services worldwide, including loans and insurance, especially in countries lacking robust banking infrastructure. Developers and investors use Ether to build and invest in blockchain projects.
Binance Coin (BNB)
Issued by Binance Exchange and founded by Changpeng Zhao, Binance Coin is among the top cryptocurrencies globally. Initially based on Ethereum’s ERC-20 standard, it now operates on its blockchain, Binance Chain. Originally created as a utility token for trading fee discounts, BNB now supports payments for transaction fees, travel bookings, entertainment, and various financial services on the Binance platform.
Shiba Inu (SHIB)
Shiba Inu, launched in August 2020 by an anonymous creator called Ryoshi, is an Ethereum-based meme coin featuring a Shiba Inu dog as its mascot. Created as a humorous alternative to Dogecoin, Shiba Inu gained significant popularity in late 2021 following social media exposure, notably after Elon Musk posted about his new Shiba Inu puppy. It is considered an 'inside joke' coin but has attracted a dedicated community of supporters.
