The Philippines’ Cagayan Economic Zone Authority (CEZA) took on board 15 offshore companies involved in Fintech developments to settle in Luzon, a blockchain hub that is developed by CEZA.
The cryptocurrency and fintech wave will contribute approximately $32 million in the area, as projected by the local regulators and government.
As reported by Coin Journal, the chief of CEZA, Raul Lambino, commented, that “working with virtual currency companies allows the Philippines to gain momentum in providing an environment that encourages financial innovation and inclusion, while ensuring that the best interests of the country, the financial system, consumers, and investors are adequately protected.”
One example of a Fintech company that will join the ambitious project is the Korean giant Hanwa Group, which has already signed a Memorandum of Understanding with CEZA.
Meanwhile, other notable companies involved in the project for now include: Changwei International, ST Union Capital Holdings, Xin Peng Group, Madison Blockchain Strategy Investment Company, ANX International and others.
The idea of developing a special hub in this Economic Zone is to boost the local economy and build a strong Fintech reputation for the future. According to CNBC and Coin Journal, Mr. Lambino expressed his hopes that this initiative will turn the region into the “Silicon Valley of Asia”.
According to local press, each company that agrees to locate in the The Cagayan Economic Zone will receive significant tax breaks in exchange for certain amount of yearly investments and overall contribution to the fintech / blockchain arena in the region.
The project can turn into a greater plan for reviving the local economy since Lambino mentioned his ambitions of connecting the region to the rest of the world, while creating a strong local blockchain environment and may be opening a special educational institution to support ongoing development and fintech education.