By Benjamin Cuaresma
MANILA — The Department of Finance (DOF) is intensifying efforts to reduce the cost of sending money home, with Finance Secretary Frederick Go urging banks, financial institutions, and technology providers to make overseas remittances faster, cheaper, and more accessible for millions of Filipino migrant workers.
Go said many overseas Filipinos currently lose a significant portion of their hard-earned income to remittance charges, with fees in some cases reaching as high as 10 percent of the amount sent.
“These are the fruits of the hard work and sacrifices of our overseas Filipinos. We should find ways to lessen the burden of high remittance charges,” the Finance chief said.
To reduce transfer costs, the DOF is exploring the wider use of digital payment technologies.
Go disclosed that he has been consulting with members of the Fintech Alliance and other technology experts to identify more efficient ways of moving money across borders while keeping transactions secure and affordable.
Among the concepts presented is the possible use of digital assets, including stablecoins such as USDT, as an intermediary for converting foreign currencies into Philippine pesos. Supporters of the proposal believe the technology could shorten processing times and reduce transaction costs.
The Finance secretary stressed, however, that discussions are still ongoing and that the government is awaiting feedback from banks and financial service providers before any approach is considered.
The government believes that lowering remittance fees would allow overseas Filipino workers (OFWs) to send more of their earnings directly to their families instead of paying high transfer charges.
Remittances remain one of the country’s major economic pillars, supporting millions of Filipino households and contributing significantly to domestic consumption.
Go also welcomed recent initiatives by local financial institutions to eliminate certain transfer charges, citing these as examples of how digital banking can become more consumer-friendly.
He reiterated his long-standing position that electronic financial services should be fast, secure, convenient, and affordable, saying lower transaction costs encourage greater financial inclusion and wider adoption of digital payments.
The DOF continues to engage stakeholders in the financial and technology sectors as it works to make cross-border remittances more efficient and ensure every peso earned by Filipino workers overseas is maximized.
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