The Bangko Sentral ng Pilipinas (the Philippines’ central bank) is strongly in favor of stablecoins, according to Mhel Plabasan, Director of the organization, as they can help the monetary system and enable “affordable and faster” cross-border transfers.
Stablecoins to boost Philippines’ payment system
While speaking on a panel at “Crypto Rising: CBDCs & Stablecoins: The Asia Perspective” by Forkast, Plabasan said that Stablecoins can boost the nation’s payment system. He noted how many Filipinos work abroad and made the argument that stablecoins may make it possible for them to send money home more cheaply. Plabasan stated:
“We have seen it really has the potential to revolutionize both domestic and cross-border payment more affordable, faster, and even the possibility of using stablecoins to make cross-border remittance efficient.”
Nearly 12 million people of Filipino descent are estimated to reside outside of their country. Their number is the largest in the United States – more than four million.
Plabasan said that regulators should continuously engage with the private sector and actively monitor new technology even as he supports the adoption of stablecoins.
The executive also revealed that the central bank would soon begin a test programme for its central bank digital currency (CBDC). By the end of the year, Project CBDCPh, as the authorities named it, should become a reality.
In reference to CBDCs, it is important to mention the joint initiative known as “Project Icebreaker” involving the Bank of International Settlements and the central banks of Sweden, Norway, and Israel.
Together, the entities sought to determine how such financial instruments might be used to settle international remittances and retail payments. The team will determine whether CBDCs make transactions faster and less expensive compared to conventional methods.
It will continue through the end of 2022, and a final report outlining the findings will be released in the first quarter of 2023.
Aligning with its stablecoins and CBDC efforts, Philippines central bank issued certificates of authority to two more digital banks UnionDigital Bank, Inc. (UDB) and GoTyme Bank Corporation (GTYME) in August this year, as TheCoinRise reported.