{"id":520349,"date":"2024-05-13T12:49:12","date_gmt":"2024-05-13T12:49:12","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=520349"},"modified":"2024-05-13T12:49:12","modified_gmt":"2024-05-13T12:49:12","slug":"philippine-central-bank-greenlights-new-stablecoin-for-remittance-ease","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/philippine-central-bank-greenlights-new-stablecoin-for-remittance-ease","title":{"rendered":"Philippine Central Bank Greenlights New Stablecoin for Remittance Ease"},"content":{"rendered":"

The Philippines has launched a new type of money called PHPC, aimed at making it easier for Filipinos living overseas to send money home. This stablecoin is special because it is directly tied to the value of the Philippine Peso, making it stable and predictable. The Bangko Sentral ng Pilipinas (BSP)<\/a>, the country’s central bank, has approved this initiative.<\/p>\n

PHPC: A New Stablecoin Initiative Under BSP’s Regulatory Oversight<\/h2>\n

Coins.ph<\/a>, a major blockchain platform in Southeast Asia, developed PHPC. They plan to launch this new cryptocurrency by early June, hoping to attract between 20,000 and 30,000 users in the first month. This digital currency<\/a> aims to reduce the costs for the approximately 10 million Filipinos living abroad when they send money back home.<\/p>\n

Traditional methods of sending remittances, such as banks and non-banking financial institutions known as pera padala, often come with high fees and limited hours of operation. In contrast, transactions with cryptocurrencies like PHPC can be executed 24 hours a day at lower costs. Prior to PHPC, Filipino expatriates primarily used stablecoins tied to the US dollar for remittances, incurring additional fees to convert these to pesos. The introduction of PHPC eliminates these conversion costs.<\/p>\n

Unlike other cryptocurrencies that can be very unpredictable, stablecoins like PHPC are much more stable because they are backed by a specific asset. For example, Tether (USDT), the most widely recognized stablecoin, maintains a 1:1 ratio with the US dollar and was referred to as “America’s digital dollar” by Bloomberg in 2021. Same in this case, the Philippine Peso. Coins.ph ensures that for every PHPC, there is an equivalent amount in cash or cash equivalents held in local banks, so users can always exchange their PHPC for pesos without worry.<\/p>\n

Enhancing Financial Connectivity for Filipino Expatriates Through PHPC<\/h2>\n

The pilot phase for PHPC is part of the BSP’s Regulatory Sandbox Framework. This framework allows new financial technologies to be tested in a controlled environment to ensure they are safe and effective before being released to the public. During the pilot, PHPC will be tested for various uses like paying for things both in the Philippines and abroad, trading with other digital currencies, and providing liquidity in decentralized finance applications.<\/p>\n

Wei Zhou, CEO of Coins.ph, spoke about the advantages of PHPC, emphasizing that it removes the need to convert currencies when receiving money in the Philippines. He also shared that PHPC has been designed to be available globally through partner exchanges in countries like Australia, Singapore, and the United States, which would allow Filipinos abroad to easily buy PHPC and send it directly to their Coins.ph wallets in the Philippines.<\/p>\n

This initiative is not just about making transactions easier but also about integrating the Philippines more smoothly into the global financial system<\/a>. The success of this pilot is crucial as it will determine whether PHPC can move on to a wider release. If successful, this could lead to greater financial inclusion and efficiency in the financial sector, helping millions of Filipinos around the world connect more easily with their home country financially.<\/p>\n

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#ICYMI<\/a>: #CoinsPH<\/a> has been granted @bangkosentral<\/a> (BSP) approval to pilot PHPC, a Philippine Peso stablecoin 🇵🇭<\/p>\n

Learn more about this milestone and the pilot here: https:\/\/t.co\/zpQQvr7Pv9<\/a> pic.twitter.com\/a2jWB8mSeJ<\/a><\/p>\n

— Coins.ph (@coinsph) May 9, 2024<\/a><\/p><\/blockquote>\n