Cash or Crypto? Balancing Fintech for Conservation in the Philippines
By Nurfatin Hamzah, Niña Cerilla, Camille Rivera, and Geneve Guyano
From January 15 to 23, GainForest’s Community Manager Fatin Hamzah and Founder’s Associate Niña Cerilla joined our partner Oceanus Conservation in Surigao del Sur, Philippines, to see firsthand how Conservation Data Income (CDI) is being implemented. This visit was part of the BIMP-EAGA-ROK Cooperation Fund (BKCF)-funded project: AI/Machine Learning-powered digital monitoring of mangrove ecosystems in Surigao del Sur, Philippines, a collaboration between Oceanus Conservation, Thinking Machines Data Science, the Global Green Growth Institute, and GainForest.
CDI enables community members to collect environmental data and receive compensation for their work. While we’ve supported this initiative remotely, being on the ground gave us a much deeper perspective. GainForest’s role in the project focuses on payment infrastructure and data transparency, ensuring that contributions are recognized and fairly compensated.
How payments work in the field
In Bislig, local fisherfolks from two barangays—the smallest administrative units in the Philippines—are supporting the Oceanus team with mangrove data collection as trained surveyors.
Oceanus has worked hard to build trust with the communities, providing training and guidance on how to receive payments digitally. The process looks something like this:
Oceanus receives project funds in PHP (Philippine Peso) and converts them to USDC (a stablecoin pegged to USD).
The USDC is sent to a Decaf wallet overseen by the project manager.
From there, funds are transferred to two Decaf wallets used for the project. During registration, community members signed up using Oceanus field phones. When cashing out, they have the option to use these field phones or log into their Decaf accounts using their own devices. The team leaders can then withdraw the funds and distribute them to the local community members.
Alternatively, project field officers can visit a MoneyGram outlet, withdraw the cash, and directly distribute payments to the local community members.
At first, we planned to rely entirely on this Decaf-MoneyGram system for distributing payments. But after learning about GCrypto, integrated in GCash (a popular mobile wallet in the Philippines), we thought it could be a gamechanger. We were excited about the possibility of enabling local community members as data surveyors to receive payments directly to their phones, avoiding the need for long and costly travel to the town center where MoneyGram outlets are located. But there was a catch: the 1 USDC fee per transaction.
The trade-off: High fees for digital convenience
If we had moved forward with GCrypto, local community members could have received funds straight to their mobile wallets, and they would not need to make the 35-45 minute journey to Bislig’s town center to cash out. But here is where the challenge lies:
Small payments get hit hard by the fees. Local community members are paid PHP40 per tree surveyed, which amounts to around PHP5000 per survey. A 1 USDC fee (~PHP56) might not seem like much, but it takes a noticeable chunk out of their earnings.
Digital convenience comes with a price. GCrypto is simple to use, but that high network fee makes it tough to justify for small transactions like CDI payments.
In remote coastal barangays, even digital wallet users face significant cash-out fees when converting their funds into physical cash. Physical cash remains the dominant mode of payment in these far-flung places. In many cases, even those with digital wallets like GCash would still need to encash their wallet funds into physical cash, which incurs additional fees. These cash-out services are offered in "sari-sari stores," small convenient stores within the neighborhood. Cash-out fees may range from P5.00 for up to P100.00 cash-out, up to P20.00 for P1,000.00. In total, cashing out PHP1,000.00 may incur up to PHP70.00 in fees (including the GCrypto fee).
For now, Decaf-MoneyGram still seems like the better choice. Even though cashing out can be inconvenient, this method ensures that more of the money actually reaches the local community members.
We still decided to give the GCash option a try, hoping some local community members would prefer the digital route. After all, some might not want to cash out but would rather send money to their families, pay bills, or make online purchases. We offered the option to 11 people, and initially, two expressed interest. One followed through—but in the end, even that local community member opted for cash. It is clear that, despite the convenience of digital payments, the comfort of cash is still very much the preference.
Challenges in converting and transferring funds
Foreign exchange losses
Oceanus receives funding in PHP but needs to convert it into USDC for payments, and that process often results in a loss of value. For environmental organizations, especially in the Global Majority, every little bit counts. Maybe in the future, stablecoins pegged to local currencies—like Celo Real or cREAL in Brazil and PUSO in the Philippines—could help reduce financial friction in projects like this and further expand their use cases and ecosystem integration.
Why cash still dominates
After spending time in the field, it became so clear why cash is still king. The barriers to switching to digital are real, and it is not just about technology.
Cash-centric people might not see the point of buying things straight from their digital wallet. As a result, they may feel the need to travel to Bislig town to withdraw funds as cash.
Traveling to withdraw cash is costly. The local community members have to travel 35-45 minutes to Bislig town, and those travel costs add up, eating into their earnings.
Not everyone can access their money on the first try. One local community member was able to withdraw funds, but another was turned away because of issues with ID verification.
Internet access is scarce. Most people rely on "Piso WiFi"—pay-per-use kiosks that provide 10 minutes of internet access for a one-peso coin. Very few local community members have regular internet access, so digital wallets are impractical for most.
People trust what they can hold in their hands. Even when people do get paid digitally, they prefer to withdraw cash. It is a step they are used to. Most would rather have cash in hand from the start.
Adoption takes time. At first, two local community members were interested in GCrypto. Then only one was. Eventually, none made the switch.
Making the jump to digital payments is not just about offering a new option—it is about building trust, overcoming traditional habits, and addressing logistical barriers that are not always obvious at first glance.
Bridging Web3 with real-world accessibility
The strength of the Decaf-MoneyGram partnership
One thing that really stood out to us during our field visit was how Decaf and MoneyGram have opened doors for unbanked communities to access cash. That said, ID verification is still an issue, and there is a need for clearer guidelines or other ways to verify identities.
Celo’s efforts in promoting accessibility
We are grateful for Celo's involvement in the ecosystem, especially given how they have worked to integrate with established platforms like GCash and the Philippine Digital Asset Exchange (PDAX). By connecting with GCrypto, a feature of GCash powered by PDAX, Celo has helped expand the possibilities for digital assets in the region. This effort demonstrates Celo's commitment to accessibility, making financial inclusion more feasible for communities that might otherwise be left behind. Of course, as we saw, there are still challenges—especially around transaction fees for micro-payments—but it is clear that Celo is doing their best to find solutions that work for real-world situations.
What this means for future payment models
Being in the field gave us a lot of clarity about how to design more effective payment systems for conservation projects.
Digital payments need to match local needs. It is not just about the technology; it is about making sure it fits within the community’s way of life.
Lower transaction fees for small payments are essential. A 1 USDC fee is manageable for larger transfers but is a significant obstacle for micro-payments like CDI.
We need to keep exploring alternative options. Stablecoins tied to local currencies or mobile money solutions like GCrypto could make payments more accessible.
Training and community engagement are key. Shifting from a cash-based economy to digital finance takes patience and a lot of support. This is where local grassroots organizations work hand in hand between communities to bridge technology such as crypto.
The path forward for digital conservation payments
Being on the ground with Oceanus Conservation highlights the challenges of using digital finance in the field. While digital solutions can offer greater efficiency, cash remains the preferred choice because it is simple, accessible, and trustworthy. It is a clear reminder that for Web3 builders and anyone designing digital payment systems, ground truthing—being present and understanding the real-world context—is crucial to creating effective solutions. No matter how advanced the technology, it has to align with the needs and realities of the community it is meant to serve.
Are you building blockchain solutions for environmental and social impact? We're open to collaborating with communities and developers to make digital payments more accessible for conservation projects. Let's work together to bridge the gap between Web3 innovation and on-the-ground realities. Reach out to team@gainforest.net to start a conversation!
How does your current approach compare to for example if all had revolut? The Phillipino currency is supported ( which does not directly mean that it is available there)