Coins.ph has received Bangko Sentral ng Pilipinas (BSP) approval to pilot a Philippine Peso backed stablecoin named PHPC. This initiative falls under the BSP's Regulatory Sandbox Framework, which is designed to enable the development and testing of emerging or new technology to deliver financial products and services in a controlled environment.
PHPC and its Pilot Nature under BSP’s Regulatory Sandbox
PHPC is designed to have a stable value, directly pegged 1:1 with the Philippine Peso and backed by Coins.ph’ cash and cash equivalents held in Philippine bank accounts. This peg ensures that users can reliably redeem their PHPC for Philippine Peso, providing a secure way to transact digitally.
The pilot under BSP’s Regulatory Sandbox will assess the functionality and potential benefits of PHPC in real-world applications while monitoring its impact on the existing financial ecosystem. PHPC’s potential uses include domestic and cross-border payments, trading with other virtual assets, hedging against market volatility, and providing collateral and liquidity in DeFi applications. This sandbox approach ensures that the proposed innovation adheres to the established controls and parameters that aim to balance innovation with consumer protection, data privacy and data protection, and AML/CTF/PF risks, among others, as PHPC progresses from concept to potential market readiness.
From Pilot to Public Implementation
The transition from the pilot phase to broader market implementation depends on the results obtained by Coins.ph and its PHPC during the sandbox period. Pilots that prove successful within the sandbox parameters can move towards formal public deployment, subject to final evaluations and approvals by the BSP.
This pilot marks a crucial step for Coins.ph and the wider financial landscape in the Philippines. It serves a vital platform to test the potential of digital currencies in enhancing financial inclusion.
Through the regulatory sandbox, the BSP fosters a dynamic environment that encourages financial innovation while ensuring robust consumer protection and financial stability.
