- Coins.ph has obtained approval from the Bangko Sentral ng Pilipinas to pilot a Philippine Peso-backed stablecoin
- PHPC will operate a trial under the BSP’s Regulatory Sandbox Framework
- The pilot phase, expected to last two to three months, will evaluate PHPC’s functionality and its potential in payments, trading, and DeFi applications
Coins.ph, a prominent digital asset provider, has received the green light from the Bangko Sentral ng Pilipinas (BSP) to pilot PHPC, a Philippine peso-backed stablecoin, under the BSP’s Regulatory Sandbox Framework. This framework is designed to foster innovation by allowing the testing of new technologies in a controlled environment to deliver financial products and services. The pilot phase, anticipated to run for two to three months, will assess PHPC’s functionality and its potential applications in domestic and cross-border payments, trading, and as liquidity in DeFi applications.
PHCP Pegged to Peso
Coins.ph revealed the news yesterday, noting that PHPC is set to maintain a stable value, pegged 1:1 with the Philippine Peso, and backed by cash and cash equivalents held in local bank accounts. This structure ensures that users can reliably redeem their PHPC for Philippine Pesos, facilitating secure and efficient digital transactions. The stablecoin will initially be available on the Coins.ph platform with plans for broader availability through other platforms.
Wei Zhou, CEO of Coins.ph, hailed the stablecoin as having the potential to reduce costs and facilitate real-time, 24/7 transactions for remittances—a vital service for Filipinos. The pilot aims to onboard 20,000 to 30,000 users to evaluate the stablecoin’s performance and its impact on the financial ecosystem, with the company noting the importance of the test phase:
The transition from the pilot phase to broader market implementation depends on the results obtained by Coins.ph and its PHPC during the sandbox period. Pilots that prove successful within the sandbox parameters can move towards formal public deployment, subject to final evaluations and approvals by the BSP.
Zhou revealed that Coins.ph also plans to leverage PHPC in various sectors including Web3 gaming and business-to-business payments. Its first foray into the world of blockchain actually came back in 2019 when it signed a partnership with Western Union, a partnership which still exits today.
First Step on a Longer Road
Zhou also discussed the company’s strategic plans to expand globally and double its user base by 2024, having acquired licenses across Europe, Latin America, Australia, and Africa. This international expansion aligns with his goal to integrate PHPC into the financial services offered on partner banks’ platforms and remittance services, ultimately facilitating wider adoption and utility of the stablecoin.
The initiative by Coins.ph and the regulatory oversight by the BSP exemplifies a progressive approach to financial technology, balancing innovation with robust consumer protection and stability in the burgeoning sector of digital assets. This move positions the Philippines as a forward-thinking player in the global financial landscape, ready to adapt and thrive in the evolving world of digital currencies and blockchain technology.
