Mobile wallets are expected to drive cryptocurrency transactions as more Filipinos have adopted digital platforms in accomplishing banking and other financial needs, according to Fintech Alliance.ph.

Angelito Villanueva, its chair, told the Inquirer that the "massive digitalization and the widening adoption of digital payments in the country will surely fuel cryptocurrency purchases in the country."

Citing the Philippines FinTech Report, he said there were up to 34.7 million active electronic wallet accounts in 2020, representing 93 percent of the total transaction volume via digital finance platforms in the country.

Villanueva said this figure was projected to grow in the coming years.

"The developing positive attitude and consumer behavior of Filipinos toward digital transactions also reflect a strong indication of wider adoption of other digital financial services such as cryptocurrencies," the Fintech Alliance.ph official said.

Moreover, Villanueva pointed out that e-wallet service providers and e-money issuers have begun offering cryptocurrency investments, making them more accessible to Filipinos.

He also observed the increasing interest toward the digital currency this pandemic when overwhelming unemployment encouraged the public to see cryptocurrency as an alternative means of making money. INQ"This became more evident with the pandemic catalyzing the trend. As several businesses closed shop and many Filipinos lost their jobs, ordinary citizens have started to see the value of crypto as an investment and income generating currency," he said, referring to popular cryptocurrency and blockchain-based game Axie Infinity.

With the anticipated growth in cryptocurrency transactions, Villanueva reminded the operators of e-wallets to comply with regulatory and industry standards for virtual currency exchange to ensure consumer and investor protection.

The Bangko Sentral ng Pilipinas issued last year Circular 1108 which provides guidelines for virtual asset service providers or those facilities that enable transfer or exchange of said digital assets.

"Moreover, the industry must also support the development of a crypto regulatory sandbox to better map out the future of cryptocurrency exchange in the country," he added.