A Business Model Analysis of Virtual Currency Platforms in the Philippines

The advent of advanced technology coupled withchanging consumer behavior triggered the innovations disrupting traditional practices. Among these innovations is the use of virtual currency (VC) in trade transactions. VC refers to any type of digital unit used as a medium of exchange. This study focused on the business model analysis of VC platforms among Philippine-based firms. Specifically, it looked at the revenue model, application and potential risks associated with VCs and the applicability of VCs to agribusiness firms. Descriptive analysis, business models canvas, benchmarking, trend and risk analysis were used. Results showed that VC differed in terms of purpose and target market. Two main popular forms would be loyalty program credits and cryptocurrency. The former was very common among local successful firms while bitcoin was the most traded cryptocurrency in the country. These currencies differ in the level of flexibility and sources of revenues. Meanwhile, asset-backed-tokens emerged as a virtual currency that could address some problems among agriculture-based firms. Despite the attractiveness of virtual currencies, consumers should be wary of the potential risks associated with the transactions, including liquidity and fraud possibilities. Lastly, businesses adopting VCs should widen its network of external partners to maximize the returns from the marketing program.