The post Philippine Banks Drive PHPX Stablecoin to Empower Filipinos Worldwide appeared first on Coinpedia Fintech News
The proposed launch of PHPX, a peso-backed stablecoin supported by prominent Philippine banks, has created excitement among the Filipino expatriate community. Remittance is the backbone of the Philippine economy. The stablecoin launch, scheduled to take place between May and July, is expected to simplify the cross-border payment framework. How will this influence the lives of Overseas Filipino Workers? Let’s dive deep!
What Makes PHPX Revolutionary for Overseas Filipinos?
As per a World Bank report, OFWs send nearly $40 billion a year to their home country. It makes up a major portion of the Philippine’s economy. However, if a Filipino expatriate wants to make a direct payment in his home country while staying abroad (for example, if he wants to pay the tuition fees of his child in real time), the options are not only limited but also highly expensive. Once the PHPX stablecoin is launched, an expatriate can make direct payments to his home country for essentials in real time from any country, even from the United States.
Key Players Driving the PHPX Initiative
The ambitious concept of PHPX has been materialised with the support of several prominent Philippines banks including UnionBank, Rizal Commercial Banking, Cantilan Bank, and the Rural Bank of Guinobatan.
Reports reveal that the stablecoin will be governed jointly by the banks which support the project.
How PHPX Ensures Seamless Cross-Border Transactions?
As per reports, PHPX will operate on the highly secure and permissioned network of Hedera. This ensures compliance with the Basel Committee’s low-risk crypto-asset requirements. A multicurrency stablecoin exchange will enable swaps between PHPX and other currencies like USD, SGD and JPY, supported by liquidity providers, reports say.
Broader Financial Inclusion in the Philippines Beyond Remittances
Improving the foreign remittance environment in the Philippines is not the sole target of PHPX. It has plans to expand beyond the scope of remittance. Reports suggest that the stablecoin may expand into domestic retail and point-of-sale transactions. This implies that those behind the stablecoin are keen to make financial services accessible, affordable and efficient for Filipinos both locally and abroad.
In conclusion, PHPX stablecoin is more than just a digital currency – it is a tool of empowerment for overseas Filipinos. By enabling real-time payments and fostering financial inclusion, PHPX has the potential to transform the way Filipinos manage and access their money across borders.
