Philippine Bank to Launch Crypto Trading Service

Union Bank of the Philippines plans to offer trading and custodial services for cryptocurrencies to capitalize on fast adoption of digital tokens in the Asian nation, confirmed by the Bloomberg news.

Cathy Casas, head of the bank’s blockchain and application programing interface group said that the average Filipino investor will likely hold 3% to 5% of their personal assets in digital assets like Bitcoin in five years assuming markets are “stable,” up from around 1% to 2% now. Many crypto investors are young people, some of whom earn tokens from play-to-earn virtual games, she added.

“It’s a way to future-proof our banking business,” Casas said in an interview.

Casas estimated that there is about 5% of the local population have dabbled in cryptocurrencies. That’s in line with the global average, according to an estimate from Binance Holdings Ltd., operator of the world’s largest cryptocurrency exchange.

However, Philippine central bank Governor Benjamin Diokno seems to be against with the mentioned plan as he has cautioned the public against cryptocurrencies, saying they could “pose a danger to the financial system” as they are “very vulnerable” to illicit activities like money laundering and terrorist financing.