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The Bangko Sentral ng Pilipinas (BSP) stated that it is receiving multiple proposals from the private sector to launch stablecoins in the country.
Still Cautious
In a report from CentralBanking.com, the monetary regulator said that despite the growing number of proposals, it continues to take a cautious approach as it evaluates the risks and potential benefits of using stablecoins.
BSP Deputy Governor Zeno Abenoja said in Hong Kong on November 25 that most proposals center on dollar-backed stablecoins, with fewer focused on peso-backed options. He added that many submissions aim to support cross-border retail transactions such as remittances, while others propose uses in domestic retail payments.
Abenoja said the BSP runs sandbox trials to assess how stablecoins might operate locally.
“In that limited sandbox activity so far, [it has been] shown that there could be gains in terms of having cheaper, faster, more efficient transactions for retail users… But we’re very careful – we’re watching what other players are introducing and what other jurisdictions have in mind.”
Zeno Abenoja, Deputy Governor, BSP
Abenoja stressed that the work remains at an early stage.
“We are also looking at transparency practices of the legal and regulatory contracts involving these particular transactions… We’re trying to learn from both the industry as well as the experiences of other regulators.”
Zeno Abenoja, Deputy Governor, BSP
Stablecoin in PH
Recently, local crypto platform Coins.ph, which received approval last year to test its Philippine peso stablecoin (PHPC), had its sandbox restrictions lifted in June. The company said expanding the PHPC supply could reduce the cost of remittances and cross-border transactions.
- Additionally, Coins.ph joined Circle’s Arc public testnet to explore expanding the utility of its PHPC for cross-border remittances, decentralized finance, and other web3 applications.
- During a financial literacy event in Hong Kong, CEO Wei Zhou said stablecoins could transform remittances for Overseas Filipino Workers by enabling faster, cheaper, and more efficient cross-border payments.
- Ronin Wallet users in the Philippines will also soon be able to pay with PHPC at over 600,000 QRPh-enabled merchants nationwide through a partnership between Sky Mavis and Coins.ph. The feature is pending regulatory approval and targeted for rollout by 2026.
In addition, local crypto platform Philippine Digital Asset Exchange (PDAX) also recently partnered with Toku and Codex to enable stablecoin-based payments in the Philippines.
- PDAX and Toku partnered to allow employees and contractors in the Philippines to receive salaries in stablecoins, with payouts converted to pesos and delivered via local banks or mobile wallets. The system supports real-time on-chain settlement and broad payout coverage, streamlining payroll for companies holding stablecoins.
- PDAX and Codex partnered to enable faster, lower-cost cross-border remittances using stablecoins, with liquidity and FX handled through Codex Avenue and settlement via Codex Chain. The partnership connects to local banks for fiat conversion and aims to bridge traditional finance with blockchain-based payments.
What are Stablecoins
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to traditional assets, such as the US dollar, euro, or Philippine peso.
Unlike more volatile digital currencies, stablecoins offer predictable pricing, making them suitable for everyday transactions, cross-border payments, and financial services.
They are widely used for remittances, payroll, and decentralized finance applications, and their reliability depends on transparent reserve management, robust regulatory compliance, and mechanisms that maintain the peg.
Stablecoins can also carry additional data, such as transaction metadata, compliance information, or smart contract instructions, enabling programmable payments and enhanced transparency for users and regulators.
This article is published on BitPinas: BSP Reviews Stablecoin Proposals Amid Cautious Approach to Crypto in the Philippines
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