CEZA set to construct Crypto and Fintech Hub

Cagayan Economic Zone Authority (CEZA), a Philippine Government-owned corporation, is set to construct a cryptocurrency and financial technology hub called Crypto Valley of Asia (CVA).

To be constructed in partnership with private property developer Northern Star Gaming & Resorts Inc., it will be built at the Cagayan Special Economic Zone and Freeport, and is set to accommodate 25 crypto firms that will operate in the area. It will be similar to the crypto and fintech hub in the canton of Zug, Switzerland.

Online publication e27 reports that it is “a part of the government’s bid to foster a fintech ecosystem [to] attract international blockchain companies to set up shop in the country,” and will consist of a 25-shop housing development inside the economic zone. It will include co-working and living spaces, business incubation and acceleration hubs, as well as back offices of overseas virtual exchanges (OVEs) and service providers to the global crypto space.

In a press release, CEZA administrator and CEO Raul L. Lambino said that this “will serve to attract more foreign investors and global fintech players to CEZA and the Philippines,’ which will turn the country into one of the major offshoring destinations for fintech and blockchain-related work.

CEZA recently announced that it has granted two licenses to cryptocurrency firms. Seventeen companies have already paid in full, and this development is expected to generate $68 million from licensing 25 crypto and fintech companies.

“The goal is for the CVA to generate an economic boom that will allow more Filipinos to pursue careers in technology,” says e27, mentioning that third party business providers (BPOs) will bring employment to the area.

Northern Star Chairman Enrique Gonzalez says they will create “an environment that fosters innovation, entrepreneurship and critical skills development thru education and BPO training” within the CVA. The company has already committed to investing $100 million over the next 10 years, and has already secured funds from several international and regional companies that have expressed interest regarding the CVA.

“With strong global partners that have confirmed entry into our master-planned development, we are confident in the continued momentum in positioning the Philippines as the leading destination for blockchain offshoring,” says Gonzalez.