BSP Reviews Stablecoin Proposals as Philippines Keeps Cautious Stance
The Bangko Sentral ng Pilipinas (BSP) said it is reviewing multiple private-sector proposals to launch stablecoins in the Philippines but is taking a cautious, early-stage approach. Deputy Governor Zeno Abenoja reported most proposals are dollar-backed with fewer peso-backed plans, aimed at cross-border retail use such as remittances and some domestic retail payments. The BSP is running sandbox trials that indicate potential benefits—cheaper, faster, and more efficient retail transactions—while it evaluates legal transparency, regulatory contracts, and lessons from other jurisdictions.
Local developments include Coins.ph, which had sandbox limits lifted for its Philippine peso stablecoin (PHPC) and is exploring cross-border utility via Circle’s Arc public testnet; a planned PHPC merchant payment rollout with Sky Mavis pending approval and targeted for 2026; and PDAX partnerships with Toku and Codex to enable payroll in stablecoins and faster cross-border remittances with fiat on/off ramps. The article underscores stablecoins’ use cases (remittances, payroll, DeFi) and stresses that reserve transparency, compliance, and peg mechanisms remain critical for safe adoption.
Neutral
The news is neutral for markets. It signals growing institutional and private interest in stablecoins in the Philippines—supportive for on-chain payment adoption—but emphasizes BSP’s cautious, early-stage stance and regulatory scrutiny. That combination reduces the chance of a near-term market-driven rally from regulatory approval, while confirming longer-term structural demand for stablecoin use cases (remittances, payroll, merchant payments).
Short-term impact: Likely muted price reaction for crypto markets and stablecoin projects because the BSP has not committed to broad approvals; traders may see limited speculative upside and could price in regulatory uncertainty.
Long-term impact: If sandbox results and partnerships (Coins.ph, PDAX) progress to approvals and scalable rails, adoption could increase stablecoin transaction volumes and on-ramp/off-ramp liquidity in the Philippines, supporting demand for dollar- and peso-backed stablecoins and related infrastructure tokens. Historical parallels: regulatory-led, incremental adoption seen in other jurisdictions (e.g., Singapore sandboxes, US regulatory caution) produced neutral-short-term but constructive long-term outcomes once frameworks matured. Traders should monitor BSP sandbox outcomes, any formal guidance/approvals, and local partnership rollouts for directional signals.