Peso-backed stablecoin testing in Philippines

The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), has given approval for controlled trials of a national stablecoin. This stablecoin, known as PHPC, is pegged 1:1 to the local peso and will be tested in partnership with crypto wallet provider Coins.ph. The grant for the pilot program was approved under BSP’s Regulatory Sandbox Framework. As part of the agreement, Coins.ph will hold cash reserves in pesos equal to the circulating supply of the PHPC stablecoin within the sandbox environment. The goal of pegging the stablecoin to the local currency is to facilitate its transition back to physical fiat currency.

The purpose of the sandbox testing is to assess the real-world performance of the PHPC stablecoin and its impact on the local fiat ecosystem. The potential uses of PHPC include domestic and cross-border payments, trading with other virtual assets, hedging against market volatility, and providing collateral and liquidity in decentralized finance (DeFi) applications. The results of the trials will determine whether PHPC can be used in real-world scenarios. Any public deployment of the stablecoin will require final evaluations and approvals from the central bank.

According to local regulations, the testing duration can range from three to 12 months from the start of the pilot program, depending on the complexity of the project. It is important to note that no official deadline has been revealed for the stablecoin experiment.

Stablecoins backed by the Philippine peso were first introduced in July 2019 by UnionBank, a local commercial bank. UnionBank launched a payments-focused stablecoin called PHX, which is also pegged to the Philippine peso. This initiative was launched to promote financial inclusion and support BSP’s advocacy for digital financial inclusion in the country. PHX is implemented on UnionBank’s i2i platform, which stands for island-to-island, institution-to-institution, and individual-to-individual. Similar to PHPC, PHX can be easily redeemed for pesos and credited back to users’ UnionBank accounts.

Hanan Escamilla

Hanan Escamilla

17 thoughts on “Peso-backed stablecoin testing in Philippines

  1. Crypto wallets have a history of being prone to hacks and security breaches. I don’t trust this partnership. πŸ”“

  2. The PHPC stablecoin allows seamless integration between traditional and digital currencies! πŸ”„πŸ’³ Its ability to transition between digital and physical fiat currencies provides convenience and flexibility for all users.

  3. I’m looking forward to seeing the results of the sandbox testing! Let’s hope the PHPC stablecoin performs well and can be seamlessly integrated into real-world scenarios.

  4. Stablecoins have already faced regulatory scrutiny in other countries. Why risk it here?

  5. The PHPC stablecoin will make cross-border payments a breeze! πŸ’ΈπŸŒ This will undoubtedly strengthen the connections between the Philippines and the rest of the world, promoting trade and economic growth.

  6. It’s amazing to see the Philippines embracing the future of finance! The PHPC stablecoin is another step forward in the country’s mission to become a global leader in digital finance, setting an example for other nations to follow.

  7. Cryptocurrencies have proven to be unreliable and volatile, why bother with a stablecoin? πŸ€¦β€β™‚οΈ

  8. The use of stablecoins will only complicate the financial system and create more confusion. 😫

  9. The fact that there’s no official deadline shows the lack of commitment and seriousness in this project.

  10. The PHPC stablecoin has the potential to revolutionize the way we transact and store value! πŸ’ΈπŸ’Ό Its versatility in serving different financial needs is a step forward towards offering accessible and reliable financial services for all.

  11. The PHX stablecoin by UnionBank has already set a high standard! 🌟 It’s reassuring to see that a stablecoin pegged to the local currency has been successfully implemented, providing users with a secure and easily redeemable digital asset.

  12. The PHPC stablecoin holds immense potential for promoting financial stability and reducing market volatility! Its role in hedging against fluctuating markets will provide users with a sense of security and confidence in their financial decisions.

  13. The pilot program will likely end in failure just like other similar projects.

  14. The central bank is wasting taxpayers’ money on a pointless stablecoin trial.

  15. This stablecoin will probably end up being used for illegal activities and money laundering.

  16. I love the versatility of the PHPC stablecoin! Its potential uses in trading, hedging, and providing collateral and liquidity in DeFi applications are incredibly exciting.

  17. The PHPC stablecoin will be a game-changer in hedging against market volatility! It’s fantastic to see how digital currencies can offer a new level of stability and security in the world of finance.

Leave a Reply