Chinese Crypto Miner Huaren Capital To Launch A Digital Peso For Remittances In The Philippines
Chinese Crypto Miner Plans To Launch A Digital Peso For Remittances In the Philippines
Huaren Capital had initially gone into the Philippines to expand their crypto mining services. However, the Chinese firm found another important opportunity. Huaren wants to launch a digital version of the Philippine Peso known as the Digital Peso. This will take place in H1 2019 according to a recent report. The coin will likely have its value pegged to 1 Peso. It will be the base currency for two-way remittance corridor between the Philippines and China.
What The Leadership Of Huaren Had To Say
The President of Huaren Capital Jeff Wang confirmed that this is what will happen during a press conference on Wednesday. He added that talks with potential partner banks had already begun. Besides that, they were already fully engaged with the Philippines central bank on this project.
However, the President of the Huaren Capital would not reveal which banks he was speaking with now. However, these banks do recognize the potential of cutting down the international transaction fees for the world third largest recipient of remittances by the nation.
Wang added that in China there were payment services such as WeChat Pay and Alipay. This had made transfers seamless. He added that he had learned most people in the Philippines do not have a bank account. Besides that, when they move funds from one place to another, they always incur a huge remittance fee. Thus, they were working toward reducing the cost for ordinary Filipinos.
Wang also recognized that Chinese people who live in the Philippines would be potential customers. He stated that these opportunities were going to be open to them and to the Filipino citizens.
Support By The Government
Huaren Capital already has its headquarters in the capital of the Philippines, Manila. This happened following a visit by the President of China Xi Jin Ping to the nation. Wang was able to decipher that the host would accept the blockchain initiative in the nation. Thus, they decided to establish the company inside the special economic zone.
Mr Wang added that the Philippines were positive towards the blockchain. They viewed it as a national strategy. As a result, the nation has created numerous policies and services in support of it. He also said that the nation was actively working to deal with issues related to the regulatory issues facing the entire industry.
Wang added that the company was now seeking to get approval from regulators for the digital peso project. This approval would come from the Bangko Sentral ng Pilipinas (BSP). Besides that, they expect that all partnerships with local banks will soon be finalized by the start of next year, 2019. By June of 2019, they expect that a fully functioning platform will have been launched.
The aim of the project is to bring the e-commerce world closer to the people of the Philippines. Each year, the nation receives $33 billion in remittances. This is according to a report by the World Bank. This is a huge market, which the Huaren Capital project wants to join.