Connect with us

Hi, what are you looking for?

Economy

Smart Citi, Hong Kong-based firm to launch PHL stablecoin

LOCAL tech company Smart Citi Teknologi and Hong Kong-based Xtreme Business Enterprises Ltd. (XBE) tied up to launch Philippine stablecoin.

“I think the stablecoin is probably one of the most important projects as it is going to change and transform the way financial transactions are being done in the Philippines,” said Julian So, chief executive officer of XBE in a media conference on Tuesday.

The Bangko Sentral ng Pilipinas defines stablecoins as privately issued cryptocurrencies that are designed to minimize the volatility of their value through some form of backing.

Mr. So recognized some stablecoins have collapsed in value from $1, which is what they are supposed to be, all the way down to zero.

“What we normally do when we look at stablecoins is that we ensure that the coins are being backed by solid assets which can maintain the value of the stablecoin itself and this could be in the form of government debts or in the form of cash deposits in very reputable banks,” he said.

Mr. So said the reason some stablecoins collapsed was because they were backed by other virtual assets.

“The moment the virtual currencies cease to have value, you’re going to have a de-pegging and that’s why you’re going to have a collapse of the stable currency,” he said.

The companies identified four advantages of the Philippine stablecoin project, namely: decentralized; stable and reliable; efficient; and borderless.

“The beauty behind these stablecoins is that you can simply transfer from end to end without going through the banking system,” XBE Chief Risk Officer Joshua Chu said.

Mr. Chu said ease of transfer is important to the country as many Filipinos working abroad tend to lose as much as 10-11% of their income via fees in remitting money to the Philippines.

“Imagine if you have peer-to-peer transactions enabled, where you’re no longer reliant on these mechanisms, you will automatically be bringing into the Philippines 10% of additional spending power and immediately that means more jobs and more stimulus,” he said.

Mario P. Marcos, president and chief executive officer of Smart Citi, said the company is planning to officially launch the project in two weeks.

“Within two weeks, we will be doing the launch. We can do a massive information drive to spread the information that we will be finally having the Philippine stablecoin. And I believe in a short time, this will be a center of exchange in the Philippines,” he said. — Justine Irish D. Tabile

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

SEOUL/TOKYO — Japan on Monday put its ballistic missile defenses on alert and warned that it would shoot down any projectile that threatened its...

Economy

WASHINGTON — US President Joseph R. Biden on Sunday finalized a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4-trillion debt ceiling...

Economy

MILAN — The waters in Venice’s main canal turned fluorescent green on Sunday in the area near the Rialto bridge and authorities are seeking...

Economy

ANKARA — President Tayyip Erdogan extended his two decades in power in elections on Sunday, winning a mandate to pursue increasingly authoritarian policies which...

Economy

CAGAYAN Valley pride Jan Clifford Labog shocked heavy favorite International Master Michael Concio, Jr. yesterday to seize a share of the lead with his...

Economy

Games Today (Ynares Sports Arena) 5 p.m. — Blackwater vs Terrafirma 7:30 p.m. — Converge vs Magnolia SHORT in numbers but not in heart,...

You May Also Like

Investing

Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...

Economy

THE MARCOS administration’s plan to revive the Philippine Sugar Corp. (PHILSUCOR) has raised concerns from stakeholders, who said this may duplicate other agencies’ existing...

Investing

Canary Wharf Group and The Felix Project, a food redistribution charity have agreed a long-term partnership that will see them join forces to tackle...

Economy

By Kyle Aristophere T. Atienza, Reporter AROUND eight out of 1,000 Filipinos are “modern slaves,” according to a global index that tracked populations’ vulnerability...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.