Cryptocurrencies run on blockchain technologies which provide decentralized ledgers distributed across a vast network of computer systems. This set-up aims to improve transparency and security, and value is placed on the belief of these systems to deliver those features.

Practically, Cryptocurrency is currently being used as:

1. A form of payment that can be exchanged online for goods and services if agreed to by the parties in a transaction. Traditional currencies, like PHP will need to be exchanged for the cryptocurrency to use the goods/services.
   
   Examples of goods or services that can be purchased with cryptocurrencies are:
   
   
   • game features (like SLP in Axie Infinity),
   • other digital assets like digital real estate on the metaverse, and
   • products offered by some businesses like Expedia, Cheapair.com, Virgin Galactic, Steam, etc.
2. Investments. Some cryptocurrencies are treated like stocks whereby traders invest in them believing in the cryptocurrency’s underlying technology and its future usefulness and value appreciation.

Resource:

https://www.nasdaq.com/articles/news-and-insights/what-is-cryptocurrency-and-how-it-works

https://cryptocurrencyfacts.com/what-you-can-you-buy-with-bitcoin-and-other-cryptocurrencies/

https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/is-cryptocurrency-good-investment/

Cryptocurrencies, as an example of virtual currencies, are legal in the Philippines. Also, it’s good to note that activities of businesses related to these currencies are regulated by the Bangko Sentral ng Pilipinas

For more details you may refer to BSP Circular 1108: https://www.bsp.gov.ph/Regulations/Issuances/2021/1108.pdf