- Hedera’s hashgraph technology ensures secure, fast, and scalable transactions.
- PHPX adheres to Basel Committee guidelines and MiCA standards for lawful, low-risk interactions.
- PHPX facilitates real-time remittances, multicurrency swaps, and point-of-sale payments.
In an ambitious move to modernize cross-border payments and financial inclusion, several Philippine banks are joining forces to launch a peso-backed stablecoin, PHPX. Scheduled for release between May and July, PHPX promises to streamline domestic and international transactions with unparalleled efficiency.
Hedera: The Backbone of PHPX
PHPX is being developed by Singapore-based Just Finance and will operate on the Hedera decentralized ledger technology (DLT) network. Hedera’s cutting-edge DLT ensures speed, security, and scalability—qualities essential for a stablecoin aiming to transform financial systems. Unlike traditional blockchains, Hedera leverages hashgraph consensus, which is faster and more energy-efficient while maintaining robust security standards.
By deploying PHPX on Hedera’s permissioned network, the stablecoin adheres to strict compliance requirements, including the Basel Committee’s low-risk crypto-asset guidelines and the EU’s Markets in Crypto-Assets Regulation (MiCA). These frameworks ensure PHPX meets global regulatory standards, making it suitable for both domestic and international markets.
Key Players Driving PHPX Forward
Prominent Philippine banks, including UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan, are actively involved in PHPX’s governance and development. This collaboration guarantees the stablecoin’s stability, liquidity, and practical use cases.
UnionBank’s fintech arm, UBX, brings prior experience with quasi-stablecoins through its PHX project. However, UBX CEO John Januszczak stressed the need for PHPX to go beyond closed-loop systems. He envisions a token that is “publicly exchangeable,” capable of addressing broader financial needs, from remittances to point-of-sale transactions.
Revolutionizing Remittances with PHPX
Remittances are a lifeline for the Philippine economy, contributing $40 billion in 2024 alone, per World Bank data. Yet traditional remittance systems often come with high fees and slow processing times. PHPX aims to eliminate these inefficiencies by enabling real-time, low-cost transactions.
“Imagine Filipinos in the US paying for their kids’ school tuition in real-time, directly from abroad,” Januszczak explained, highlighting the practical benefits PHPX could bring to millions of overseas workers and their families.
Expanding Use Cases Through Multicurrency and Compliance
PHPX’s functionality isn’t limited to peso transactions. The initiative includes plans for a multicurrency stablecoin exchange, enabling seamless swaps between PHPX and stablecoins in USD, Singapore dollars, and Japanese yen. This flexibility ensures PHPX remains relevant in a globalized financial landscape.
Hedera further strengthens PHPX’s compliance. Its hashgraph technology ensures not only speed and scalability but also the ability to meet stringent global regulations. This positions PHPX as a secure and lawful solution for cross-border and domestic transactions alike.
In the future, PHPX could expand into domestic retail payments and point-of-sale systems, making it an integral part of everyday financial activities in the Philippines and beyond.
By leveraging Hedera’s advanced DLT and the collaboration of leading Philippine banks, PHPX is set to redefine how money moves, both within the Philippines and across borders. The future of payments just got brighter.
