THE PESO-BASED stablecoin launched by cryptocurrency platform Coins.ph could exit the regulatory sandbox stage earlier than expected in the next month or two amid stable demand, an official said on Monday.
“I don’t think there was a specific time, but we do think that we can exit it quite soon, actually, given the current trend. There wasn’t really a specific amount of time but we’re probably looking at another month or so,” Coins.ph Global Marketing Director Katrina Gonzalez told reporters at an event.
Coins.ph Country Manager Jen Bilango said the adoption of PHPC has been strong and demand has been stable.
“Today is the first monthly report that we will submit to the BSP (Bangko Sentral ng Pilipinas). I think in terms of KPIs (key performance indicators), we’re actually more than 50% there,” she said.
“The reception has been good. Actually, we’re asking BSP if we can expand the sandbox,” Ms. Bilango added.
Coins.ph previously said it aims to have at least 20,000 to 30,000 users of PHPC during the sandbox period.
PHPC is the Philippines’ first regulated peso-pegged stablecoin.
Coins.ph received sandbox approval for its launch from the central bank in May.
Stablecoins are pegged to a fiat currency or commodity to give it a stable value, unlike other cryptocurrencies like Bitcoin or Ethereum, which have volatile prices as they are not backed by assets.
PHPC will remain at a stable value of one-to-one to the peso and is backed by cash and cash equivalents stored in Philippine bank accounts.
Ms. Gonzalez said the BSP’s sandbox restrictions include limits on the volume of PHPC being issued.
Holders of PHPC can use the stablecoin to transfer funds or for payments, she said.
Ms. Bilango added that Coins.ph has already conducted a pilot for cross-border payments from Australia to the Philippines using PHPC.
“We have that case study up and running. We received interest from different corridors in terms of making PHPC available. Obviously, you have the likes of Dubai, Singapore, and the United States using that. So cross-border is really the biggest and most important use case for us,” she said.
PHPC can be used to buy other cryptocurrencies such as Bitcoin and Ethereum, as well as other stablecoins, and for hedging amid market volatility, Ms. Bilango added. — A.M.C. Sy
