As a crypto investor with experience in the Asian market, I’m excited about the recent announcement from the Bangko Sentral ng Pilipinas (BSP) regarding the controlled trials of the Philippine Peso-backed stablecoin, PHPC. This development comes after UnionBank’s successful launch of a payments-focused stablecoin pegged to the Philippine peso, PHX, in 2019.
As a crypto investor, I’m excited to hear that the Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, is planning to conduct controlled trials for a national stablecoin. This means that they will be creating a digital currency that is pegged 1:1 with the local peso. This could potentially make transactions within the Philippines more efficient and accessible, as well as open up new opportunities for financial inclusion. Stay tuned for updates on this development!
The Bangko Sentral ng Pilipinas (BSP) has given its approval for a trial run of PHPC, a Philippine Peso-backed digital currency, in collaboration with digital wallet provider Coins.ph. This authorization was granted under the BSP’s Regulatory Sandbox Framework.
In accordance with the agreement, Coins.ph will keep a corresponding amount of Philippine pesos in reserve, equal to the total supply of the PHPC stablecoin operating within the test environment. The linking of local currency to the PHPC is intended to facilitate the conversion of the stablecoin back into its physical counterpart, the Filipino fiat currency, as stated in the announcement.
The sandbox testing is designed to evaluate the true-to-life functionality of the PHPC stablecoin and its repercussions on the surrounding local fiat market.
“PHPC’s potential uses include domestic and cross-border payments, trading with other virtual assets, hedging against market volatility, and providing collateral and liquidity in DeFi applications.”
As an analyst, I can say that the outcomes of our current tests will significantly influence whether PHPC transitions from a trial stage to practical application in the real world. Nevertheless, it’s important to note that any formal unveiling for public use will depend on the final assessments and authorizations from the central bank.
Based on local regulations, the length of the testing phase for the stablecoin project may vary between three and twelve months following the pilot’s launch date. However, it should be emphasized that no definitive deadline was disclosed during the announcement of the stablecoin trial.
Check out CryptoMoon’s guide to learn more about using stablecoins for everyday transactions.
Unionbank, a local commercial bank in the Philippines, introduced stablecoins pegged to the Philippine peso for the first time in July 2019.
UnionBank introduced a new stablecoin named PHX, which is focused on transactions and pegged to the Philippine peso. This move aims to enhance financial accessibility in alignment with the Bangko Sentral ng Pilipinas (BSP) initiative promoting digital financial inclusion throughout the nation.
A related report from PhilStar Global disclosed that UnionBank had adopted PHX on its multi-faceted i2i platform, which stands for island-to-island, institution-to-institution, and individual-to-individual interactions.
As a financial analyst, I can tell you that similar to PHPC, PHX holds the convenience of being seamlessly convertible into pesos. Once exchanged, these pesos get deposited back into the account holders’ UnionBank accounts.
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2024-05-13 11:47