Philippine Peso-Backed Stablecoin Launches by Bitspark Known as peg.PHP
Stablecoins are one of the easiest ways to connect the institutional investors with the crypto market, because of its unchanging ratio with whatever asset it is connected to.
The most popular, albeit controversial, stablecoin has been Tether, which is pegged to the US dollar. Now, Bitspark has decided to release its own stablecoin, which is being pegged to the Philippine peso, according to a press release on April 25th.
The PHP-pegged cryptocurrency will be linked to money transfers under the name “peg.PHP,” which Bitspark will soon be launching. Bitspark is a money transfer solution that has no involvement with banks for these transactions and is entirely based on the blockchain. Reports indicate that the first company that will be using the peg.PHP option will be Okra Solar, which is a tech startup in Cambodia, but it was founded in Australia.
Okra Solar provides remote regions with off-grid solar solutions, and the new peg.PHP would be available to citizens in the Philippines via the Bitspark payment network. In the press release, the company adds that this opportunity will allow stablecoins to be applied to bill payments for the first time. Customers also have the ability to use a cash deposit through the stablecoin in one of the shops associated with the Bitspark network.
The co-founder and CEO for Bitspark, George Harrap, noted that the goal of the company is ultimate to improve the whole money transfer environment, which includes bill payments. Harrap states that considering the 180 official currencies in the world today, blockchain technology makes it possible to open the door for consumers to use those currencies that they previously could not access.
Six international banks decided to sign letters of intent regarding their own plans to launch stablecoins, pegged to local fiat currencies that are already tied to IBM’s network. Those banks include Banco Bradesco in Brazil, Bank Busan in South Korea, and Rizal Commercial Banking Corporation in the Philippines, to name a few.
Two months ago, new regulations were established in the Philippines for Digital Asset Token Offerings (DATO) by the Cagayan Economic Zone Authority. These rules will help to maintain some sort of regulation in the crypto industry while preventing investors at the same time. The regulations include information about acquiring crypto assets, which includes both security and utility tokens.
In an announcement earlier yesterday, TrustToken said that they would be creating new stablecoins that are pegged to Australian dollars, Euros, Canadian dollars, and Hong Kong dollars.