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The Philippine Stock Exchange (PSE) is looking to add crypto assets to its list of tradable investments. The announcement comes amid a recent rise of interest in bitcoin and other cryptocurrencies in the Philippines.
"If there should be any exchange for cryptos, it should be done at the PSE." Philippine Stock Exchange president and CEO Ramon Monzon told CNN Philippines on Friday, July 2nd.
"If there should be any exchange for cryptos, it should be done at the PSE. Why? Number one, it's because we have the trading infrastructure. But more important, we'll be able to have investor protection safeguards, especially with a product like crypto."
-Ramon Monzon via CNN Philippines
While this news may surprise some crypto enthusiasts, others may have anticipated it due to the rise in cryptocurrency interest the nation has demonstrated. According to a March 2021 article on FintechMagazine.com, the Philippines is one of the fastest adopters of cryptocurrency globally.
"A rise in crypto-friendly technology in the country has also facilitated its uptake, which means the Philippines is now on a par with Vietnam and Nigeria."
-Fintech Magazine
In the last year alone, the value of bitcoin has increased by over 300%. In July 2020, it sat below $10,000 per unit, but now in July 2021, the price (which recently fell significantly) is still above $30,000.
Bitcoin pricing one year chart screenshot via Coindesk.com.
Witnessing this appreciation has pulled many people towards the idea of investing in it as an alternate form of storing and growing wealth.
Indeed, Monzon addressed this in his interview with CNN Philippines:
"It's all capital gains, meaning the price I get from my crypto is the price you are willing to pay... So a lot of people are attracted to that because of the volatility. Instant riches could be instant poverty too,"
-Ramon Monzon via CNN Philippines
What happens if PSE adds crypto trading?
Suppose the PSE was actually to add crypto trading. In that case, it could potentially do a lot to forward the crypto cause globally. Of course, Crypto trading is already a reality, but adding crypto assets to a the Philippine Stock Exchange might help legitimize cryptocurrency in the eyes of the masses.
It could also potentially change how people trade on the exchange, given that crypto's volatility is much higher than traditional assets such as stocks and bonds. Adding crypto could unlock new opportunities and strategies but also create greater risk for less experienced investors.
