Four Philippine banks will launch PHPX, a stablecoin designed to streamline remittances and international payments using Hedera's hashgraph technology.
UnionBank, RCBC and other Philippine banks, in collaboration with the Hedera network, plan to launch PHPX, a multi-bank stablecoin backed by Philippine pesos. This project, which is expected to be operational by mid-2025, aims to revolutionize remittances and cross-border payments, offering greater efficiency, security and transparency.
With PHPX, the Philippines not only seeks to modernize its financial system, but also to become a global benchmark in blockchain adoption by traditional institutions.
What is PHPX and why is it a milestone for the Philippines?
PHPX is a stablecoin, meaning a cryptocurrency backed by a fiat currency, in this case, the Philippine peso. Unlike other volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are designed to maintain a stable value, making them ideal for everyday transactions and international payments. However, what makes PHPX unique is its multi-bank naturePHPX is backed and managed by four Philippine financial institutions, UnionBank, Rizal Commercial Banking Corporation (RCBC), Cantilan Bank and Banco Rural de Guinobatan.
This collaborative approach will not only ensure greater trust in the stablecoin, but also reflects a joint effort to modernize the country’s financial system.
The Philippines is one of the largest recipients of remittances in the world, with an inflow of US$40.000 billion by 2024, representing approximately 10% of its GDP. However, the process of sending money from abroad remains slow and expensive, with fees that can exceed 5% of the amount sent. With the development of PHPX, the nation seeks to change this reality and enable real-time transactions with minimal fees, cutting out middlemen and reducing costs for Filipino workers abroad.
But the PHPX stablecoin will not be limited to remittances. Reports They indicate that the banks involved in its development plan to use it for cross-border payments, international trade, and even retail transactions within the country. These use cases will make the stablecoin a versatile tool that could transform not only personal finances, but also the national economy.
Hedera: The technology behind PHPX
The choice of Hedera as a platform for PHPX is not accidental. Hedera is a distributed ledger technology (DLT) network that uses a consensus algorithm called hashgraph, known for its speed, safety and energy efficiencyUnlike blockchain technology, hashgraph allows for near-instant transactions with minimal fees, making it the ideal choice for financial applications like PHPX.
On the other hand, Hedera, being a network authorized and governed by a council of leading organizations, complies with the requirements of the Basel Committee and the EU Markets in Crypto-Assets Regulation (MiCA), allowing banks to address one of the biggest challenges of stablecoins, which is to comply with international financial regulations. In this context, Hedera’s technology not only ensures that PHPX is considered a low-risk cryptocurrency, but also facilitates its adoption in other countries.
The future of finance in the Philippines and beyond
The launch of PHPX marks an important milestone in the adoption of emerging technologies like blockchain and DLT by traditional financial institutions, something that will not only benefit the millions of Filipinos who rely on remittances, but could also set a precedent for other developing countries. If the stablecoin is successful, it could inspire other nations to adopt similar solutions, accelerating the transition to a more efficient and accessible global financial system.
By combining technological innovation with a collaborative approach, the Philippines is proving that blockchain is not just a tool for speculators, but a real solution to everyday financial problems.
Main image from Pixabay
