Cryptocurrency is making headway in a Southeast Asian nation as several local banks come together to introduce a new stablecoin that opens up digital asset investment opportunities for its citizens.
In the Philippines, four banks are aiming to bring a multi-bank stablecoin to the fore, enabling Filipinos to engage more easily in the cryptocurrency sphere and revolutionizing cross-border transactions in the process.
Introducing the New Stablecoin
A Philippine Peso-backed cryptocurrency is set to facilitate real-time international remittances within the year.
According to blockchain analyst Ledger Insights, a collaboration among UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan is in motion to launch this multi-issuer stablecoin. This initiative is slated to become a pioneering financial instrument in this emerging Asian market.
A recent post from Ledger Insights noted, "Later this year, several Filipino banks plan to launch the PHPX stablecoin for cross-border remittances and more, utilizing the Hedera DLT platform."
This coalition of four local banks is gearing up to introduce PHPX, a stablecoin backed by the Philippine Peso. The aim of PHPX is to enhance cross-border payments and foster financial inclusion, leveraging the Hedera decentralized ledger technology (DLT).
The participating banks anticipate that by mid-year—between May and July—Filipino crypto users will have access to PHPX tokens for their international transactions.
Smoother Cross-Border Remittances
This collaborative effort between the banks intends to fortify cross-border payment systems for Filipinos and facilitate the exchange of stablecoins across various currencies.
Leading this venture is UnionBank of the Philippines, through its fintech arm, UBX. UBX has been delving into blockchain technology applications within the local financial industry, such as operating a quasi-stablecoin network.
In an interview with Ledger Insights, UBX CEO John Januszczak emphasized the need for a publicly exchangeable stablecoin to support a variety of use cases beyond their own systems.
Benefits for Overseas Filipino Workers
The banks highlight that PHPX will significantly benefit Filipinos working abroad by enabling instant remittances to their families back home.
Januszczak observed that many Filipino overseas workers typically remit funds to cover expenses like their children’s education in the Philippines.
"We want Filipinos who earn their living in the US or elsewhere to pay their kids’ school fees directly from abroad, with real-time payment capabilities," explained the UBX executive.
Ledger Insights also mentioned that participating banks will handle stablecoin management on the backend, allowing PHPX coins to be deposited or sent into a “bank account, a GCash wallet, or collected in cash at an over-the-counter location.”
Image courtesy of Pixabay, chart from TradingView
