By Komfie Manalo
Cryptocurrency remittance adoption got a massive boost as the Bangko Sentral ng Pilipinas greenlighted Coins.ph to issue Philippine Peso stablecoin, making money transfers more convenient, reliable and cheaper.
"PHPC will empower Filipinos to transact seamlessly and securely in the digital economy while also providing a stable store of value as they participate in the rapidly evolving digital asset landscape," said Wei Zhou, CEO of Coins.ph.
In a press conference, Zhou said the PHPC would maintain a stable value and pegged 1:1 to the Philippine peso. It will be fully backed by cash and cash equivalents stored in Philippine bank accounts. As such, this ensures the stability of its value and gives users the security of fully redeeming PHPC for the Philippine pesos.
Because PHPC is a stablecoin, the token is safe from volatile market swings, unlike other cryptocurrencies, including the most popular Bitcoin. Stablecoins are a type of cryptocurrency designed to have a stable value. They are typically pegged to a fiat currency like the US Dollar or to a commodity like gold.
Unlike other cryptocurrencies, such as Bitcoin or Ethereum, which can have highly volatile prices, stablecoins maintain a steady value, making them more suitable for transactions,
trading and storing value.
Coins.ph CEO Wei Zhou
This makes PHPC ideal for peer-to-peer and B2B transactions alike. The vision for PHPC is that, in time, it will enable convenience, cost-efficiency, and speed in various financial activities, including remittance, trading and payments.
With a fully-fledged, open, and accessible Philippine Peso stablecoin, Coins.ph envisions that PHPC will revolutionize the financial transactions of both individuals and businesses, affording them greater flexibility, lower costs and rapid settlements.
The benefits of PHPC for remittances are promising. It allows people to transfer funds at any time of the day, any day of the week. This reduces the cost and time associated with sending funds back home, thus making it more convenient for OFWs and ultimately putting more money in the pockets of their loved ones.
"While PHPC presents a variety of potential applications in trading and payments, we anticipate remittances to be a foremost use case for Filipinos as PHPC will not only reduce costs but also mean that now Peso transactions can happen 24/7 and in real time," said Zhou.
The PHPC will be the first Philippine stablecoin available for retail customers to trade and use in various transactions.