UnionBank, the leading bank in the Philippines, will soon be the country’s first financial institution to issue its own cryptocurrency. A pilot transaction has already been completed successfully, according to local reports.
UnionBank has successfully issued and transacted with its very own cryptocurrency. Called PHX, it will be a stablecoin pegged to the Philippine peso. The coin will operate on a platform called ‘i2i’ and will connect UnionBank with other banks in the rural parts of the country.
According to UnionBank, PHX is intended to be a “store of value, medium of exchange, and a programmable token.” It will allow the bank to facilitate more transparent practices and automate its payment systems. Moreover, the bank believes PHX will also inadvertently boost liquidity.
The Philippines Pushing for a Digital Economy
The Philippine Star reports that the PHX stablecoin has already been used in pilot programs for purchases, buy-backs, and internal transfers, and will soon be opened to the public. As of now, the underlying network and technology have not been disclosed. However, UnionBank has said that it plans to expand the use of PHX beyond just the Philippines. One hint, though, may lie in UnionBank’s previous partnerships. Last year, the bank announced a collaboration with Ethereum-backed startup ConsenSys. The firm is known for organizing the largest blockchain-related conference every year and may indicate that UnionBank is building its platform on Ethereum. However, it’s still unclear and more details are yet to emerge.
