Despite the interest, the regulator is maintaining a "cautious approach," with Deputy Governor Zeno Abenoja stating that regulatory work is still at an "early stage".
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The Bangko Sentral ng Pilipinas (BSP) has confirmed it is reviewing multiple private sector proposals to launch stablecoins in the Philippines.
Despite the interest, the monetary regulator is maintaining a cautious approach as it evaluates the associated risks and benefits.
Speaking in Hong Kong on 25 November, BSP Deputy Governor Zeno Abenoja noted that the majority of proposals involve dollar-backed stablecoins, with fewer submissions for peso-backed options.
The proposed use cases largely focus on cross-border retail transactions, particularly remittances, as well as domestic retail payments.
The central bank is currently using sandbox trials to assess operational viability.
Zeno Ronald R. Abenoja
“In that limited sandbox activity so far, [it has been] shown that there could be gains in terms of having cheaper, faster, more efficient transactions for retail users,” Abenoja said. “But we’re very careful – we’re watching what other players are introducing and what other jurisdictions have in mind”.
Abenoja emphasised that the regulatory work remains at an “early stage,” with the BSP scrutinising transparency practices and legal contracts.
He added that the regulator is trying to learn from both industry players and the experiences of regulators in other markets.
Market activity is already visible in this sector. Local platform Coins.ph had restrictions lifted on its Philippine Peso stablecoin (PHPC) sandbox in June and is exploring wider utility for remittances.
Additionally, the Philippine Digital Asset Exchange (PDAX) recently entered partnerships with firms like Toku and Codex to facilitate stablecoin-based payroll and cross-border payment services.
