ConsenSys is the leading global blockchain software technology company. They just published their second global opinion survey, which shows that there is a huge gap in understanding cryptocurrencies among Filipinos. An even more staggering 96% of Filipino respondents have heard of cryptocurrencies. Only 46% claim to have a strong understanding of how these digital currencies operate. The survey, which was released in December, underscores a critical demand for new, innovative education programs. Such initiatives are critical to bridging the knowledge gap and fostering a safe adoption of digital assets in the Philippines.
Founded by Joseph Lubin, who co-founded Ethereum, Consensys advocates for a collaborative approach between regulators and stakeholders to develop effective regulatory frameworks for Web3 technologies. The Company stresses the moves necessary to keep pace with the new risk profiles introduced by innovation in blockchain and decentralized technology.
“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,” — Joseph Lubin
Consensys 4 recommends that the Philippines should learn from the experiences of the United States, Singapore, and Japan. These countries have cracked down on security measures and anti-fraud protocols among crypto exchanges while allowing the introduction of regulated crypto investment products. Taken together, these measures have created a more secure framework within which adoption of digital assets can occur.
Lubin believes that wider adoption of cryptocurrencies, blockchain, and Web3 technologies holds the potential to improve financial inclusion in the Philippines. These technologies present thrilling prospects as substitutes for established banking technologies and services. They especially serve those that are underbanked by the traditional financial system.
We can visualize a world in which blockchain-powered payments provide faster and cheaper cross-border transactions in a more efficient way than existing remittance services. Overseas Filipino workers (OFWs) stand to gain significantly as well. This agreement will enable them to better serve their communities, sending remittances to families back home with lower transaction costs and greater efficiency.
“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.” — Joseph Lubin
In their report, Consensys highlights the importance in regulation of protecting against the specific problems presented by blockchain technology, not regulation that kills innovation. We have to depart from old, conventional regulatory approaches. It’s high time to develop creative solutions that better match the distributed nature of Web3.
The company’s survey underscores a growing need for financial literacy initiatives to supplement regulatory steps. Addressing the knowledge gap surrounding cryptocurrencies is crucial for empowering individuals to make informed decisions and participate responsibly in the digital economy.
“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,” — Joseph Lubin
Second, the Philippines can boost financial literacy and expand knowledge about cryptocurrencies. This measured approach will minimize risks while unlocking the transformative potential of blockchain technology. This involves advancing financial inclusion and facilitating economic empowerment.
“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,” — Joseph Lubin
