Four leading Filipino banks have announced plans to launch a multi-bank stablecoin PHPX to enhance cross-border payments and introduce new opportunities.
PHPX Launch Plans
The development is spearheaded by banks like UnionBank, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan. Initiated by JUST Finance, the stablecoin will operate on the Hedera network. UBX, a subsidiary of UnionBank, has prior experience in blockchain with its 2018 ACH system deployment based on Ethereum.
The Role of PHPX in Remittances
Remittances from Filipinos abroad constitute a significant portion of the Philippine GDP. PHPX aims to enhance control over funds once they reach the Philippines. Banks will facilitate efficient operations through the stablecoin, offering conversion into bank accounts and other financial tools.
Financial Security and Future Plans
JUST Finance plans to hold PHPX reserves in trust accounts, backed by government bonds. This will help reduce risks for investors in case of issues. Future projects include a multi-currency stablecoin exchange to support cross-border transactions, requiring liquidity providers.
The PHPX launch marks an important step in advancing financial technology in the Philippines, facilitating easier remittances, and introducing new blockchain-based financial services.
