Crypto

UBX Introducing Philippine Peso Stablecoin on Polygon to Enhance Remittances

UBX, the digital subsidiary of the Aboitiz Group, has disclosed its plans to launch a stablecoin pegged to the Philippine peso, utilising the Polygon PoS blockchain technology.

This initiative is aimed at enhancing the efficiency and cost-effectiveness of remittance processes within the Philippines, a sector that significantly contributes to the nation’s economy.

The development of this stablecoin is a strategic response to the vital role remittances play in the Philippine economy. With overseas Filipino workers remitting approximately US$37.2 billion in 2023, as reported by the BSP, the impact of these funds on the country’s gross domestic product is substantial.

John Januszczak

John Januszczak, President and CEO of UBX, expressed the significance of this partnership, stating,

“By leveraging Polygon’s advanced blockchain technology, we aim to provide a seamless and secure platform for peso-denominated transactions, thereby enhancing financial inclusion across the country.”

The project’s goals extend beyond improving transaction speed and reducing costs. It also seeks to lessen dependency on intermediaries, thus providing faster and more efficient services for Filipinos abroad.

Additionally, the initiative is set to broaden the financial ecosystem by integrating more digital financial services, which will, in turn, bolster the economic resilience of families and communities across the Philippines.

William M. Valtos Jr.

William M. Valtos, Jr., Senior Managing Director at UBX, highlighted the stablecoin collaboration’s potential to tackle specific challenges in the Philippine banking sector.

“By combining UBX’s deep understanding of the Philippine financial market with Polygon’s blockchain expertise, we are poised to create a stablecoin solution that addresses the unique challenges faced by our country’s banking sector,”

William remarked.

Stablecoins, a category of digital currency, aim to maintain a stable value by being pegged to traditional currencies like the US dollar. This stability makes them a reliable medium for transactions, including trading, money transfers, and a variety of online financial services, in contrast to the more volatile nature of other cryptocurrencies.

Featured image credit: Edited from Freepik