In a Southeast Asian nation, cryptocurrency is becoming more popular as multiple local banks unite to introduce a brand-new stablecoin, allowing their citizens to explore the world of digital investments.
Four Filipino banks are planning to launch a shared stablecoin, aiming to integrate more Filipinos into the digital currency world and modernize the nation’s international transactions, particularly those involving borders.
New Stablecoin
A fresh digital currency, supported by the Philippine Peso, could facilitate immediate international money transfers within a year’s time.
According to Ledger Insights, UnionBank of the Philippines, Rizal Commercial Banking Corporation, Cantilan Bank, and Rural Bank of Guinobatan have jointly introduced a multi-issuer Philippine stablecoin. This groundbreaking move is paving the way for a new type of financial instrument in the innovative financial landscape of the Asian nation.
This year, it’s anticipated that multiple Philippine banks will debut the PHPX digital currency for facilitating international remittances and other purposes.
On @hedera DLT@UBXph @d_inderias
A deep dive:
— Ledger Insights (@LedgerInsights) January 9, 2025
“Later this year, several Filipino banks plan to launch the PHPX stablecoin for cross border remittances & more on Hedera DLT,” Ledger Insights said in a post.
Four local banks are teaming up to launch PHPX, a digital currency tied to the value of the Philippine peso, which is known as a pegged or fiat-backed stablecoin.
A blockchain expert stated that PHPX aims to improve cross-border transactions and financial accessibility within the Philippines. This initiative is set to debut on the Hedera Decentralized Ledger Technology (DLT) platform.
Based on reports from four local banks, it’s anticipated that Filipino cryptocurrency users may begin utilizing the PHPX token for cross-border transactions as early as mid-year. This is due to their plans for the new Philippine stablecoin to be operational anywhere from May to July of this year.
Easier Cross Border Remittances
In simpler terms, this multi-bank alliance aims to strengthen cross-border money transactions for Filipinos, enabling them to swap stablecoins between various currencies.
UnionBank of the Philippines spearheads the collective initiative, with their fintech affiliate UBX taking the helm. Over the years, this subsidiary has been investigating ways to incorporate blockchain technology within the Philippine financial sector, including the operation of a near-stablecoin network.
“We need to create something that is publicly exchangeable, so that we can support use cases outside of our own closed loop ecosystem,” UBX CEO John Januszczak told Ledger Insights in an interview.
PHPX To Benefit Filipino Overseas Workers
Filipino workers abroad would significantly profit from the PHPX, as it facilitates immediate money transfers to their families back home in the Philippines.
According to Januszczak, it’s common for Filipino workers abroad to transfer their earnings back home to take care of household expenses, often including education costs for their kids.
“We want Filipinos that are earning money in the US (or elsewhere) to be able to pay their kids’ school tuition directly from the United States (and) for that payment to be effected in real time,” the UBX executive explained.
In simpler terms, Ledger Insights reported that banks taking part will need to convert stablecoins behind the scenes. This means you can deposit or transfer PHPX coins into a “bank account,” a “GCash wallet,” or withdraw them as cash from an over-the-counter location.
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2025-01-12 08:11