Philippine-based digital wallet service Coins.ph introduces the country's first regulated stablecoin.
Coins.ph's Philippine Peso-Backed Stablecoin Exits Regulatory Sandbox
Coins.ph, the leading crypto exchange platform in the Philippines, has successfully exited the regulatory sandbox operated by the Bangko Sentral ng Pilipinas (BSP) with its Philippine Peso-backed stablecoin, PHPC. This stablecoin, designed to provide certainty and stable value for digital assets in the Philippines, is set to revolutionise remittances and cross-border transactions in the country [2][3][5].
The main use case for stablecoins is emerging market cross-border payments, and the Philippines fits this bill perfectly. With a diaspora of 16 million people and being the world's fourth-largest recipient of remittances, the country recorded $40 billion in incoming funds last year according to World Bank data [6]. Coins.ph's PHPC offers direct conversion between Philippine pesos and the stablecoin, simplifying foreign exchange processes and eliminating the need for multiple currency conversions [1][3]. This facilitates 24/7 availability for cross-border payments and stable value storage, which is especially important for overseas Filipino workers sending remittances back home and businesses engaging in international trade.
Coins.ph's strategic collaboration with other stablecoins such as the USD-backed WUSD, listed on Coins.ph, provides crypto users with seamless fiat-to-stablecoin exchanges, enhancing liquidity and usability in the region [1]. The company's regulatory compliance and large user base position PHPC within a robust regulatory framework, fostering digital asset adoption and financial inclusion in the Philippines, aiming to build a more inclusive and efficient financial ecosystem [3][4].
Stablecoins excel in countries with weak currencies, and the Philippine peso, while having some depreciation, is less volatile than many other currencies. This makes PHPC an attractive option for transactions, particularly remittances, in the Philippines. Wei Zhou, CEO of Coins.ph, sees PHPC's potential in areas like remittances and cross-border transactions [7].
The central bank of the Philippines has licensed alternative financial services, including 12,797 pawnshops, to handle remittance transactions. The entry of PHPC into the mainstream financial market could accelerate remittances significantly, making transactions faster, cheaper, and more transparent [6].
In markets with limited financial access, such as the Philippines, payment efficiency becomes even more critical. Coins.ph's PHPC stablecoin, backed by reserves held at local banks in cash or cash equivalents, is set to play a critical role in the Philippines by supporting these faster, cheaper, and more transparent remittances and cross-border transactions [2][3][4].
It is worth noting that another Filipino stablecoin, PHPX, is also in development, involving multiple banks and a fintech spin-off (UBX) [4]. Coins.ph's PHPC stablecoin has graduated from the regulatory sandbox, and the company is now able to support larger transactions due to some sandbox restrictions being lifted [5].
Coins.ph reports to the central bank, but public disclosures could not be found on the website (possibly included in the app). Despite this, the regulated approach of Coins.ph reflects broader industry developments in the Philippines, positioning the company as a leader in the digital asset space in the country.
In summary, Coins.ph's PHPC stablecoin will play a critical role in the Philippines by supporting faster, cheaper, and more transparent remittances and cross-border transactions through a regulated, peso-backed stablecoin, leveraging Coins.ph’s large user base and regulatory compliance to drive mainstream digital asset usage.
- Coins.ph's successful exit from the regulatory sandbox with its Philippine Peso-backed stablecoin, PHPC, signifies a significant step towards revolutionizing the finance industry in the Philippines.
- The stablecoin, PHPC, is set to enhance various aspects of the Philippines' finance sector, including remittances and cross-border transactions, by providing certainty and stable value for digital assets.
- Stablecoins like PHPC, with their ability to simplify foreign exchange processes and eliminate the need for multiple currency conversions, are particularly beneficial for overseas Filipino workers sending remittances and businesses engaging in international trade.
- As the Philippines has a large diaspora and is one of the world's largest recipients of remittances, the adoption and mainstream use of stablecoins such as PHPC could accelerate remittances significantly, fostering a more efficient and inclusive financial ecosystem in the country.
