The financial landscape of the Philippines is on the cusp of transformation as the central bank has authorized Coins.ph to test a pioneering stablecoin in the nation’s vital remittance market. This step marks a significant advance in modernizing the remittance sector, one of the largest globally, with the goal of enhancing its efficiency and accessibility.
Coins.ph, known for its digital currency exchange services, is set to launch PHPC, a stablecoin pegged to the Philippine Peso, following approval from the Bangko Sentral ng Pilipinas (BSP). Under the BSP’s Regulatory Sandbox Framework, PHPC will be backed by Coins.ph’s reserves held in Philippine bank accounts, ensuring its stability and reliability.
Led by Wei Zhou, the former Chief Financial Officer of Binance, Coins.ph plans to introduce PHPC to its platform by early June, contingent on a successful pilot phase. This pilot will test the stablecoin’s real-world viability and its impact on the existing financial system. If certain benchmarks are met, Coins.ph anticipates full approval, allowing it to transition out of the sandbox environment.
This initiative follows the Philippines' decision to limit Binance's operations within its borders and its commitment to launch a wholesale central bank digital currency (CBDC) within the next two years, avoiding a retail CBDC. Simultaneously, digital payments firm Strike has expanded its global money transfer services to the Philippines, further diversifying the remittance landscape.
Strike's expansion into the Philippines allows it to tap into the country’s lucrative $12 billion remittance market, emphasizing the growing demand for efficient and cost-effective cross-border transaction options.
Coins.ph aims to integrate PHPC into remittance platforms in countries with significant remittance flows to the Philippines, promising greater efficiency and reduced transaction costs for overseas Filipino workers and their families. This initiative is poised to revolutionize cross-border payments, streamline processes, and promote financial inclusion.
May 2024, Cryptoniteuae