Yes. A cryptocurrency is classified as a virtual currency and according to BSP Circular No. 1108, a virtual currency as previously defined in BSP No. 944, shall now be referred to as a virtual asset. It follows that a cryptocurrency is a virtual asset which can be defined as property, proceeds, funds, funds or other assets, and other corresponding value. It can then be deemed as property bought if someone buys a crypto from another person. It can also be considered as compensation for something done, or something given since it is akin the proceeds received from someone. It is at the same time an asset of a person which he could hold, sell, buy, loan, or whatever he may deem convenient in accordance with the stipulations, clauses, terms and conditions agreed to with another person.
By its nature, being tradable and determinable as to its number and its value as dictated by the market participants just like in equities, it can be exchanged through online channels. One can earn a profit from trading cryptocurrencies if he mines and sells it at his designated price, or buys it from someone or at an exchange at a low price and sells it at a higher price. The excess fiat currency received from the amount he utilized to buy and sell a cryptocurrency is a capital gain which is similar to the gain in the trading of a share of stock of a company. However, it is not similar in terms of tradability. In stocks, there is a time limit for trading. In the Philippines, currently due to the corona virus pandemic, the trading hours is only from 9:30am to 1pm instead of 3:30pm. Whereas, in cryptocurrency exchanges, it is 24 hours non-stop. One could access and execute a trade of buy or sell at any time and anywhere he pleases to do it.
Although cryptocurrency in the Philippines is not a legal tender, it is recognized by the Banko Sentral ng Pilipinas. This means that it has been legalized and brought to the public as something legitimate as long as it is exchanged or traded in a Virtual Asset Service Provider that has a Certificate of Authority to operate as a Money Service Business to accept cash, checks, other monetary instruments or other stores of value, and the payment of a corresponding sum in cash or other form to a beneficiary by means of a communication, message, transfer, or through a clearing network to which the service provider belongs.
The use of cryptocurrency is a phenomenon which most of the people did not even expect to come. Out from nowhere, it just popped up like the bing bang theory. In fact, it is very complex in the eyes of normal citizens, with all its different kinds of features, models, interfaces, functionalities, and services. It runs in the infinite space and colossal clouds of networks in the internet which might be a little frightening due to its unlimited possibilities in its use and purpose. Nevertheless, when it is viewed as only a mode or alternative for payment, it is not so intimidating as it seems. As long as the cryptocurrency is used as something like cash or property to purchase or loan of goods, services or money in the present with a promise to pay or deliver in the future, as expressed that it can be defined as funds or property by the BSP Circular mentioned earlier depending on the agreement between the parties, it can therefore be subjected to credit transactions.
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