Several prominent Filipino banks are set to launch a multi-bank peso-backed stablecoin called PHPX this year. The initiative leverages Hedera's Distributed Ledger Technology to potentially enhance cross-border payments for Filipinos.
A Shift Toward a Publicly Exchangeable Stablecoin
UnionBank has long been active in blockchain via its fintech offshoot UBX. The goal is to create a publicly exchangeable stablecoin supporting new use cases beyond the current closed-loop system, as CEO John Januszczak highlights.
The Role of PHPX in Cross-Border Remittances
The Philippines receives over $40 billion in remittances annually, representing about 10% of GDP. PHPX aims to improve upon current remittance systems, which are often slow and costly.
A Solution for Multi-Currency Stablecoin Exchange
Cross-border payments require currency exchanges. PHPX aims to offer a multi-currency stablecoin exchange, allowing conversion with currencies like USD or JPY, adhering to strict regulatory standards.
The launch of PHPX marks a significant step forward for Filipino banks in adopting advanced financial technologies, ensuring security and efficiency for both domestic and international transactions. Necessary infrastructure and regulatory compliance are vital ahead of the expected launch between May and July.
