- Coins.ph has fully launched its PHPC stablecoin after graduating from the regulatory Sandbox overseen by the Philippine central bank.
- The stablecoin aims to improve remittance efficiency by using blockchain technology for faster, lower-cost transfers.
- PHPC reserves are held in local banks and subject to regular audits and central bank reporting.
- Stablecoins are seen as beneficial in emerging markets, where financial access can be limited and remittance needs high.
- Other Filipino stablecoins, such as PHPX, are also under development with participation from multiple local banks and fintech companies.
Coins.ph announced that its Philippines peso-linked stablecoin, PHPC, has completed its testing phase in the regulatory sandbox managed by Bangko Sentral ng Pilipinas (BSP). The stablecoin joined the central bank’s sandbox in April 2024 and exited in June, slightly later than the original schedule.
As one of the largest crypto platforms in the Philippines, Coins.ph has handled remittances for years. The introduction of a local currency stablecoin is expected to make this process faster and less expensive. The company plans to mint more PHPC tokens and raise transaction limits following the easing of regulatory restrictions.
Wei Zhou, CEO of Coins.ph, stated, “We can now unlock PHPC’s full potential, particularly in areas where Filipinos need it most – remittances and cross-border transactions.” PHPC is backed by cash or cash equivalents stored in local banks. The company undergoes regular third-party audits of its reserves and security systems, and it submits reports to the central bank. Coins.ph also referenced public disclosures that may be available within its app.
Stablecoins, or cryptocurrencies pegged to traditional currencies, are gaining popularity in emerging markets for cross-border payments. In the Philippines, only 56% of the population had bank accounts as of 2021. The central bank has responded by licensing almost 13,000 pawnshops to support remittance transactions, according to World Bank data. This network is critical for serving the country’s large diaspora, which sent around $40 billion in funds to the Philippines last year.
Stablecoins can be especially useful in countries with less stable currencies. The Philippine peso saw declines of approximately 10% in 2022 and 4% in 2023, though it remains less volatile than some other regional currencies.
Other digital peso projects are also underway. Earlier in 2024, PHPX—a joint stablecoin project—was announced involving Rizal Commercial Banking, Cantilan Bank, Rural Bank of Guinobatan, and fintech company UBX, with Just Finance as coordinator.
For further details on Coins.ph and its offerings, visit Coins.ph.
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