How to Send Money to the Philippines Online Using Bitcoin

Originally published on January 30, 2023 and updated on October 8, 2024

For millions of Filipinos living abroad, sending money home has always been a lifeline to their families. In 2023, personal remittances from Overseas Filipino Workers (OFWs) reached an all-time high of USD 36.2 billion, highlighting just how crucial these funds are for families in the Philippines.

Sources of remittance to the Philippines. Source

While bank transfers and traditional remittance services are convenient, they often come with hefty fees and lengthy processing times, creating bottlenecks in the remittance ecosystem, especially when funds need to be remitted urgently, such as in family emergencies.

If you are looking for a faster and more affordable way to send money to the Philippines, Bitcoin remittance might be the perfect solution. The article below will explain why and how to get started.

Key takeaways

• Save on fees with better exchange rates: When you use Bitcoin, you slash the fees and get much better exchange rates than banks usually offer for sending money to the Philippines.

• Send money in minutes: With Bitcoin, your money reaches the Philippines in just a few minutes, and if you use the Lightning Network, it’s even faster.

• No Bank? No problem: Your recipient in the Philippines doesn’t need a bank account. As long as they have a smartphone and a crypto wallet, they can easily receive the money.

• Transfer anytime, anywhere: You don’t need to rely on a bank’s schedule. With Bitcoin, you can send money to the Philippines whenever you want, all while completely controlling the transaction.

Why send money to the Philippines using Bitcoin?

Sending money through the Bitcoin blockchain is one of the best ways to send money to the Philippines. Here are some reasons why:

1. Better exchange rates and lower fees

Remember that banks charge fees for their services, adding a percentage to the money you’re sending. Suppose you want to send money to the Philippines using a different currency, which will require conversion. In that case, they’ll also give you an exchange rate of around 2-5% below the market rate, meaning if 1 USD = 54.65 PHP, the central bank (BSP) will buy your dollar for P54.38 while local banks will buy it for even less. With Bitcoin, your fees are much lower, especially using the Lightning Network.

2. Permissionless transactions

Banks often ask you to justify why you want to transfer money to the Philippines before they process it, which is a much bigger hassle when sending large amounts. With Bitcoin, you have way more control over your money. Pairing it with the practice of self-custody will give you complete control, eliminating the need for any permissions or justifications.

3. Faster transfers

Let’s say you decide to jump through all the hoops and send money to the Philippines through a bank. Your money could take a week to land in your recipient’s account. Bitcoin transactions are already quick (taking around an hour at the most), but using the Lightning Network streamlines the process even more, allowing for faster and cheaper transfers.

4. Convenience

Don’t have time to head to the nearest remittance center? With Bitcoin, you and your recipient can send and receive money from the comfort of your own homes.

5. Accessibility for unbanked recipients

Bitcoin can be beneficial for sending money to recipients in the Philippines without bank accounts. Many Filipinos, especially in rural areas, need access to traditional banking services. According to the Central Bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), as of 2022, the unbanked population in the country is 44 to 50% or 34.3 to 36 million Filipino adults.

With Bitcoin, recipients only need a smartphone and internet access to receive funds. They can set up a Bitcoin wallet without needing a bank account or through complex verification processes. Local Bitcoin exchanges and services in the Philippines often offer cash pickup options. This allows recipients to convert Bitcoin to cash quickly without a bank account.

What are the disadvantages of using Bitcoin remittance?

1. Volatility

Bitcoin's price fluctuates, often on a second-by-second basis, affecting the amount your recipient receives when they convert it to pesos. If the market drops before they cash out, they might get less money than expected.

2. Transaction fees

Bitcoin transaction fees can vary depending on network congestion. However, they tend to be lower than traditional bank fees. To minimize these fees, use the Bitcoin Lightning Network.

3. Regulatory concerns

While regulations around Bitcoin are improving globally, some countries, including the Philippines, are still concerned about its illicit use. Always check local laws before sending large amounts.

4. Technical barrier

Bitcoin transactions, especially on peer-to-peer platforms, can overwhelm novice crypto users. Crypto platforms have streamlined their platforms, but setting up accounts and completing transactions still generates a high amount of user friction.

Key considerations when using Bitcoin for remittances

Using Bitcoin for remittances to the Philippines requires careful attention to security measures and legal compliance. These factors impact the safety and legality of cryptocurrency transfers.

Security

Bitcoin transactions are irreversible. Once sent, funds cannot be retrieved if sent to the wrong address. To avoid losses, do the following:

• Double-check recipient Bitcoin addresses before sending.

• Use reputable exchanges and wallets with strong security features. Enable two-factor authentication on all accounts.

• Be cautious of phishing scams. Verify website URLs and never share private keys or passwords.

• Store large amounts of Bitcoin in offline "cold storage" wallets for added protection against hacking.

• Back up wallet recovery phrases securely. Without them, Bitcoin can be lost forever if devices are damaged or stolen.

Legal compliance

Bitcoin regulations vary by country. Check the cryptocurrency laws of the country you’re residing before attempting to send Bitcoin to your loved ones in the Philippines. Be aware of anti-money laundering rules as large or frequent transfers may trigger additional scrutiny.

Take note that some banks may restrict accounts linked to crypto exchanges—research bank policies before transferring funds.

Lastly, keep records of all Bitcoin transactions for tax purposes. Report gains or losses as required by tax authorities.

FAQ’s on Bitcoin remittance to the Philippines

1. How can I send money from the USA to the Philippines?

You can send money through bank transfers, remittance services, or Bitcoin. Using Bitcoin is often faster and cheaper. With crypto exchanges, you can buy Bitcoin safely and send it directly to your recipient’s wallet in the Philippines. They can easily convert it to pesos or keep it in Bitcoin.

2. How do I send a large amount of money to the Philippines?

Traditional bank transfers can be slow and expensive, especially for large amounts. Bitcoin offers a quicker and more affordable option. With Bitcoin, you can send any amount instantly, and the recipient can cash out in pesos.

3. What’s the best way to send money to the Philippines from the USA?

Bitcoin is a great choice for low fees and fast transfers. You can buy Bitcoin on crypto exchanges and send it instantly, and your recipient can convert it to pesos or keep it as Bitcoin, depending on what works best for them.

4. What is the cheapest way to send money from the US to the Philippines?

The cheapest way to send money from the US to the Philippines is often through Bitcoin remittance. Using crypto exchanges, you can buy Bitcoin and send it to your recipient, who can cash it out quickly. This method typically incurs lower fees and offers better exchange rates than traditional options.