The BSP Has Approved the Country's First-Ever Stablecoin. Here's What You Need to Know
The BSP Has Approved the Country’s First-Ever Stablecoin. Here’s What You Need to Know
The Philippines will soon see its first-ever stablecoin after the Bangko Sentral ng Pilipinas (BSP) gave the green light to cryptocurrency exchange Coins.ph to issue the token, which will be called PHPC.
Stablecoins are a type of cryptocurrency designed to have a stable value. These are typically pegged to fiat money—or those with government-issued currency—like the U.S. dollar, or to commodities such as gold. So, unlike other cryptocurrencies like Bitcoin, users of stablecoins will not be subjected to the highly volatile prices in the market, making them more fitting for transactions, trading, and storing value.
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In the case of PHPC, the value will be pegged 1:1 to the Philippine peso, according to Coins.ph. Users, whether individuals or businesses, can be assured of its stability, as it is backed by cash and cash equivalents stored in local bank accounts.
“PHPC will empower Filipinos to transact seamlessly and securely in the digital economy while providing a stable store of value, as they participate in the rapidly evolving digital asset landscape,” Wei Zhou, chief executive officer of Coins.ph, said.
What to know about PHPC
The stablecoin, which is still in the preparation stage, will come in useful not only for payments and trading, but also for remittances. Sending and receiving money across countries will be more time and cost-efficient, with fund transfers set to be made available 24/7 and in real time. Overseas Filipino workers no longer have to go through the inconvenience of using U.S. dollar-pegged stablecoins and converting the currency into Philippine pesos. No need for recipients to head over to the usual banks and remittance centers just to claim the money they’re expecting, too.
According to Zhou, Coins.ph is working to roll out PHPC and list it on its crypto exchange as part of an early public test by June.
Coins.ph, accessible through its mobile application of the same name, offers various cryptocurrencies and other financial services. Fully regulated by the BSP, it claims to be the first-ever crypto-based company in Asia to hold both virtual currency and electric money issuer licenses from a central bank. As it stands, the platform has a user base of over 18 million.