Peso-Based Stablecoin (PHX) Cryptocurrency Launches By Philippines’ UnionBank
Philippine-based UnionBank has reportedly issued a stablecoin pegged to the Philippine peso. This marks the first instance when a stablecoin is launched by a local financial institution.
UnionBank senior vice president and head of the fintech business group Arvie de Vera said that the stablecoin’s transactions were implemented on the i2i platform. He said:
“PHX is a stable store of value, medium of exchange and is a programmable token with self-executing logic. It enables transparent and automatic execution of payments.”
PHX is available to all UnionBank account holders and purchasable through debits to account holders. In the future, UnionBank plans to connect PHX and i2i and make them interoperable platforms across wallets and platforms in the Philippines and abroad. Three rural banks took part in the inaugural transfer and the practical tests were successful.
The tests included purchasing, transferring, buying, redeeming transactions, and domestic remittances through the bank’s blockchain platform. The variety of ways through with the PHX token can be use may boost online crypto trading as more people in rural areas will find making use of the cryptocurrency beneficial.
Vera claims that the banks that had joined the platform successfully performed several transactions with PHX including purchase, buy-back, and internal transfers. Although, until now, the technology behind the stablecoin is not made public.
Union Bank of the Philippines (UnionBank) is a publicly-listed universal bank. The Bank distinguishes itself through superior technology, unique branch sales, and service culture, and centralized backroom operations. Their cutting-edge technology allows delivery of online, real-time business solutions to meet the customers’ changing and diverse needs through innovative and customized cash management products and service offerings.
However, Weiss Crypto Ratings are skeptical of this move, They took to Twitter to say:
In a bid to drive greater financial inclusion, Philippines-based #UnionBank has launched a payments-focused #stablecoin pegged to the Philippine peso. Is it borderless? Permissionless? Decentralized? If not, it will not lead to increased financial inclusion. #thisIsntCrypto
— Weiss Crypto Ratings (@WeissCrypto) July 30, 2019
Although UnionBank has been in the blockchain ecosystem for a while now. Earlier this week they successfully completed a pilot of a blockchain-based cross-border remittance from the Philippines to Singapore. It was a result of a partnership between UnionBank and Singapore-based OCBC Bank. The parties deployed the Adhara liquidity management and international payments platform and UnionBank-UBX's i2i platform to make the remittance.