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Philippines Central Bank Approves Trial of National Stablecoin
The Philippines central bank, Bangko Sentral ng Pilipinas (BSP), has given the green light for controlled trials of a national stablecoin that will be pegged 1:1 to the local peso. The move comes as the BSP, in collaboration with crypto wallet provider Coins.ph, aims to explore the potential of a digital currency tied to the country’s fiat currency, according to a recent announcement.
Pilot Project for PHPC Stablecoin
The pilot project for the Philippine peso-backed stablecoin, known as PHPC, has been approved under the BSP’s Regulatory Sandbox Framework. Coins.ph, a well-known player in the Philippines’ crypto space, will be responsible for maintaining cash reserves in pesos equivalent to the circulating supply of the PHPC stablecoin within the sandbox environment.
Potential Applications of PHPC
PHPC is anticipated to have various potential applications, including:
- Domestic and cross-border payments
- Trading with other virtual assets
- Hedging against market volatility
- Providing collateral and liquidity in decentralized finance (DeFi) applications
Real-World Trial and Adoption
The upcoming sandbox testing phase will serve as a real-world trial of the PHPC stablecoin and its impact on the local fiat ecosystem. The results of the trials will play a crucial role in determining the stablecoin’s readiness for broader adoption. A formal public deployment of PHPC will be subject to final evaluations and approvals by the central bank.
Previous Initiatives in the Philippines
UnionBank, a local commercial bank, introduced a payments-focused stablecoin called PHX in July 2019. The stablecoin offers seamless redemption for pesos and has been integrated into UnionBank’s i2i platform, enabling secure transactions between individuals, institutions, and across different islands.
Future Cryptocurrency Guidelines in the Philippines
The Philippines’ securities regulator is set to unveil a regulatory framework for crypto assets and trading by the latter half of 2024. The upcoming cryptocurrency guidelines prioritize investor protection and aim to regulate trading within the Philippines. Recent actions by the SEC include pursuing the removal of Binance-linked applications from Apple and Google app stores in the country.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
