Multiple Filipino banks are collaborating on the development of a digital currency called PHPX (Philippine Peso Exchange) to streamline cross-border transactions and promote financial accessibility. The introduction of PHPX is planned for some time within the range of May to July.
Just Finance, a Singapore-based startup, is set to unveil their PHPX stablecoin on the distributed ledger technology (DLT) platform provided by Hedera Network.
Based on a report by Ledger Insights, UnionBank of the Philippines, Rizal Commercial Banking Corporation, Cantilan Bank, and Rural Bank of Guinobatan are among the Philippine banks taking part in the project. Each bank will have an important function in managing the PHPX stablecoin.
Banks aim to revamp cross-border remittance with PHPX stablecoin
Through their fintech division UBX, UnionBank previously oversaw PHX – a type of quasi-stablecoin within a self-contained payment system. The CEO of UBX, John Januszczak, emphasized the importance of developing a token that could be traded openly to accommodate applications beyond our current ecosystem.
A significant chunk of the Philippine economy is supported by remittances, as indicated by World Bank data which shows that an estimated $40 billion was sent home by Filipino workers abroad in 2024.
PHPX aspires to extend its reach beyond local transactions, focusing on smoothing out cross-border money transfers. This is achieved by providing swift real-time payment options and exploring applications that go beyond simple remittances.
Januszczak stated a desire for Filipino workers earning income in the U.S. (or abroad) to have the ability to instantly pay their children’s school tuition from the United States directly.
Enabling remittances through global compliance
To facilitate international transactions, this initiative proposes setting up a platform for trading multiple currency stablecoins. This platform will necessitate providers who can swap the proposed Philippine Peso stablecoin (PHPX) with stablecoins denominated in U.S. dollars, Singapore dollars, and Japanese yen.
Beyond our banking associates, additional eligible investors could potentially join to handle the liquidity of the PHPX stablecoin, contingent upon future market requirements. It’s possible that this token could broaden its reach into local retail and transaction points in the future.
By utilizing Hedera’s permissioned network, we can ensure our operations meet the Basel Committee’s criteria for low-risk cryptocurrencies. Moreover, PHPX’s activities will align with the European Union’s Markets in Crypto-Assets Regulation (MiCA) standards or similar regulations applicable to specific regions.
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2025-01-10 12:24