BPI Pilots Stablecoin Settlement for Cross-Border Payments | BitPinas
BPI has partnered with Meridian to pilot a stablecoin-powered settlement system for cross-border payroll payments, starting with freelancers and virtual assistants receiving income from overseas.
Weekly Crypto RoundupGet the weekly briefing for Philippine crypto insiders, from the country’s longest-standing crypto and blockchain news publication. The Bank of the Philippine Islands (BPI) has partnered with global digital clearinghouse Meridian to pilot astablecoin-based settlement system for cross-border payments, the bank announced Thursday. The trialwillinitially handle inbound payroll credits for informal economy workers, including freelancers and virtual assistants receiving income from overseas clients. BPI stated it plans to make the service available to a broader range of clients ahead of the 49th ASEAN Summit in November. System Mechanics and OperationsStablecoin is a type of cryptocurrency designed to maintain a fixed value by being pegged to fiat currencies, such as the U. S. dollar. In the planned payment rail, stablecoins will act as an intermediary settlement instrument before funds are converted into Philippine pesos and credited to recipient accounts. “Filipinos move billions of pesos every year, and it is our responsibility to make sure that their money arrives faster, cheaper, and just as securely as it does today,” BPI President and Chief Executive Officer TG Limcaocosaidin a statement. Regulatory Compliance and Industry ContextBPIsaidthe pilot will be conducted in coordination with the Bangko Sentral ng Pilipinas (BSP) under existing regulatory frameworks. The bank added that expanding the service beyond the initial phase will depend on adherence to consumer protection rules and transparency regarding stablecoin reserves. The integration of stablecoins for cross-border transactions is already utilized in the Philippines by cryptocurrency platforms including Coins. ph and PDAX, whichbothofferstablecoin conversion and payout services for local users. Cebuana Lhuillierrecently announcedbuilding its own stablecoin rails as well for cross-border remittances, to be built in collaboration with Fireblocks and the Solanablockchain. The trial represents a development in BPI’s approach to digital asset rails. In July 2021, shortly after assuming his role as BPI chief executive, Limcaoco stated in media interviews that he did not view private cryptocurrencies as an asset class due to a lack of underlying value and legal backing. At the time, Limcaoco expressed support for BSP initiatives focused on central bank digital currencies (CBDC) rather than decentralized digital assets. This article is published on BitPinas:BPI Pilots Stablecoin Settlement for Cross-Border PaymentsWhat else is happening in Crypto Philippines and beyond?BitPinas is a news website that portrays the most accurate coverage and representation of crypto, blockchain, play-to-earn, and NFT news and updates in the Philippines since 2017.