Philippine-based cryptocurrency platform Coins.ph has received regulatory approval to issue PHPC, a peso-backed stablecoin.

In a press briefing, chief executive officer Wei Zhou said the Bangko Sentral ng Pilipinas granted the company a sandbox-approval to issue and list PHPC by early June for a public-test period, which is expected to go on for two to three months. During the first month of testing, the company is aiming to add around 20,000 to 30,000 users as well as meet certain key performance indicators.

Coins.ph has been coordinating with the BSP on this initiative since the first quarter of 2023. Meanwhile, the central bank has also been working on launching its own digital currency as part of Project Agila.

As a stablecoin, PHPC is designed to be stable as it is fixed to the Philippine peso with a 1:1 ratio. Upon launch, PHPC will be available for retail use, including peer-to-peer and business-to-business transactions.

According to Zhou, PHPC will see primary use in remittances. The digital currency is expected to simplify the way overseas Filipino workers remit money by eliminating the need for extra conversion between currencies (such as from US dollars to pesos), thereby reducing costs and making transactions more convenient for recipients.

Zhou also revealed plans to list PHPC on partner exchanges in other countries to broaden access. This would allow OFWs to purchase PHPC abroad and send it directly to recipients in the Philippines via their Coins.ph wallets.

Source: Rappler

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