Blockchain eyed to improve efficiency of remittance services

CEBU, Philippines — A strategic partnership is exploring the use of blockchain technology to improve the efficiency of remittance services for Overseas Filipino Workers (OFWs), particularly in transaction verification, reconciliation, and cross-border settlements.

The partnership between Philippine-developed blockchain company Xode and publicly listed remittance firm I-Remit Inc. was formalized recently in Cebu City.

The initiative seeks to determine how blockchain technology could streamline financial transactions, reduce operational costs, and improve coordination among financial institutions involved in international money transfers.

During the event, I-Remit Chief Operating Officer Ma. Cristina Castillejo discussed how more efficient processes could help reduce operating expenses and potentially enable the company to provide better services to OFWs and their beneficiaries.

Xode Co-Founder and Chairman Gene Son and Co-Founder and President Gahum Vincent Garcia are leading the blockchain development initiative, while I-Remit is headed by President and Chief Executive Officer Maria Rodora Banares.

Lee Han Young, president of the Korea Blockchain Enterprise Promotion Association, also attended the signing ceremony as an international guest.

The initiative comes as remittances continue to play a significant role in the Philippine economy. OFWs sent approximately $35.6 billion through formal banking channels in 2025, according to the Bangko Sentral ng Pilipinas.

Despite their importance, international money transfers remain subject to processing costs, verification requirements, and coordination among financial institutions.

A 2026 analysis by the US Federal Reserve, based on World Bank data, placed the global average cost of sending $200 at around 6.5% in 2025.

The companies said blockchain technology could provide authorized participants with a shared and verifiable transaction record, potentially minimizing duplicate processes and improving the efficiency of cross-border settlements.

For families relying on remittances for food, education, healthcare, housing, and other daily necessities, lower operational costs could eventually help make money transfer services more affordable.

However, no immediate reduction in remittance fees or launch of a blockchain-based remittance product has been announced.

The proposed application remains subject to further technical development, regulatory compliance, and commercial evaluation. — (FREEMAN)