Good news for Overseas Filipino Workers (OFWs)! Philippine banks will launch PHPX, a stable coin pegged to the Philippine Peso (PHP). PHPX is designed to facilitate fast, secure, and low-cost digital transactions. PHPX aims to benefit OFWs and their families by streamlining cross-border payments thus making it easier for OFWs to send money to their families in the Philippines.
Currently, Filipinos who work abroad send money through bank transfers or other money transfer services that charge costly fees. Having the option to transfer money electronically using a stable coin will certainly be more cost effective, faster and safer.
Making things better, PHPX is not just for peso transfers. Other currencies like USD and JPY can be exchanged for PHPX, developing a stable multi-currency exchange. These exchanges will require liquidity providers who can earn a yield. Initially, banks will provide liquidity but other entities or individuals may join in the future.
Using blockchain technology, the initial use case of PHPX is to help OFWs with cash remittances but it can also be used in the future to facilitate cross border trade. This project is planned to start on May this year. I hope that this will mark the start of broader crypto adoption our our country.
