Young Filipinos are investing in cryptocurrencies at a level comparable to the government's national budget, and this trend is likely to grow further with potentially supportive Trump policies.
“In the Philippines, many Filipinos have already invested in cryptocurrency, with investments amounting to around six trillion pesos,” said Department of Finance (DOF) Secretary Ralph Recto during an interview with Bloomberg at the World Economic Forum’s annual meeting in Davos, Switzerland.
This figure matches the recently signed 2025 national budget of P6.236 trillion, excluding items vetoed by the president. In terms of Bitcoin value, it would take approximately 1,066,006 BTC—currently valued at this level—to fund the country’s projects, programs, and activities (PPAs) for this year.
According to Recto, the volume of crypto investments is significant “because we have a young population. The Philippines’ average age is about 25 years, and they’re interested in crypto,” adding that the majority of the population speaks English—the language used in the crypto market.
General expectations suggest that Donald Trump’s return to the White House might not threaten the crypto trend, as his regulations are likely to be pro-crypto.
Just a week ago, on Jan. 15, Bitcoin’s value fluctuated between $97,500 and $95,666 per BTC. On Monday, Jan. 20, coinciding with Trump’s inauguration as the 47th US President, Bitcoin’s trading value surged to $109,290.
The finance chief anticipates more crypto investments from the Filipino population, citing the country’s strong digital connectivity.
“We have a company called GCash as well,” Recto added. “Ninety million Filipinos have an e-wallet, where they can save money, invest, and many are turning to crypto.”
When asked about potential concerns surrounding the high volatility in the cryptocurrency market, Recto noted that the national government has yet to conduct a thorough study on the matter. “But most of these cryptocurrencies, I think, are regulated in the United States right now. So we’re ensuring that we follow those regulations,” he further stated.
The president signed the 2025 national budget three weeks ago, reducing the initial P6.352 trillion proposal to P6.326 trillion by vetoing P194 billion in line items that did not align with the priorities of the Marcos Jr. administration.
During the Bloomberg interview, Recto also said the Bangko Sentral ng Pilipinas (BSP) may implement interest rate cuts this year, although these may be less frequent than in 2024 due to ongoing geopolitical tensions and uncertainties surrounding US policies.
Recto indicated that the government plans to return to the global debt market in the first half of the year to initiate a $3.5 billion foreign bond sale aimed for 2025.
He added that the Marcos Jr. administration is currently in discussions with eight banks to facilitate this debt sale, primarily in US dollars.
“There’s uncertainty regarding tariffs and inflation,” Recto commented, referencing incoming US President Donald Trump, who has hinted at imposing tariffs on other countries while remaining vague on specifics.
Although Recto believes the Philippines is unlikely to face direct impacts from Trump's tariffs, he warned that they could lead to higher global prices, potentially stifling inflation and complicating monetary policy.
As a member of the central bank’s Monetary Board, Recto anticipates a modest reduction in key interest rates, estimating total cuts of 50 to 75 basis points (bps) for the year, likely spaced apart by 25 bps each semester.
In light of Trump’s promises for steep tariffs and strict immigration policies, nations worldwide are assessing the potential economic ramifications.
While Trump refrained from announcing immediate tariffs on China during his first days in office, he called for investigations into unfair trade practices, which affected currency markets and boosted foreign currencies.
“If tariffs are imposed and inflation rises, interest rates may not decrease as much as we desire, affecting global growth,” Recto said.
Despite elevated borrowing costs, the finance chief pointed to robust remittances and liquidity in the domestic market as stabilizing factors.
He noted that the country is projected to grow at least six percent this year, driven by strong household consumption.