Cryptocurrency is a type of digital asset that is designed to work as a medium of exchange. Cryptocurrency is based on cryptography, which is a technique used to secure communications and prevent unauthorized access to financial data. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. In 2018, the Philippines became the first country in Southeast Asia to officially recognize cryptocurrency as a form of payment. As of 2019, there are over 1,600 different types of cryptocurrency in circulation, with a total market value of over $100 billion.
Bitcoin is the most popular cryptocurrency in the Philippines, followed by Ethereum, Bitcoin Cash, and Litecoin. The Philippine Central Bank has issued guidelines for the use of cryptocurrency, recommending that exchanges be registered with the country’s Securities and Exchange Commission and that transactions be subject to anti-money laundering laws. In 2019, the Bangko Sentral ng Pilipinas (BSP) released a statement cautioning the public about the risks associated with cryptocurrency, including volatile prices, fraud, and hackers.