MANILA - A financial technology (fintech) company is offering a cryptocurrency-based remittance service to help multinational companies pay workers in the Philippines.
Using cryptocurrency will cut cost and transaction time compared to traditional means of sending money, fintech developer Judah Hirsch, Salarium founder and CEO, told ABS CBN News Tuesday.
Salarium, a company that offers a payroll software called SAL Pay, will soon roll out its own Salcoins for a faster and cheaper way of remitting money, he said.
“So we’ve launched [a] cryptocurrency service to make it much cheaper to bring their money from let’s say Australia, Singapore, United States, directly into the Philippines and directly into our SAL Pay system,” Hirsch said.
He said the company currently uses ethereum, another form of cryptocurrency that has much more utility compared to Bitcoin.
"Bitcoin can only be used to transfer money, where Ethereum is actually a platform for smart contracts [and] allows you to do a lot lot more than just store monetary value," he added.
Multinational companies are remitting P2- to P3-million for payroll and it costs them around 2 to 2 and a half percent in fees for transactions that take two to three days to reflect, Hirsch said.
“By using the Sal tokens, we’ll be able to reduce it to a few minutes and it will cost 1 percent or less,” he added.
He said 100 percent of Salarium's transactions will be done using its own cryptocurrency in the near future.
Using cryptocurrency, companies will have control over their money and decide whether or not to use it solely for remittances, Hirsch said.
“If you don’t want to hold on to the tokens because there’s potentially risk factors and price fluctuations, we use them for our clients just to remit over to the Philippines and immediately convert over to fiat or a peso currency,” he said.