Union Bank in the Philippines, funded by Aboitiz Equity Ventures, has launched a stablecoin with the PHX ticker. In doing so, Union Bank has become the first bank in the country to carry out transactions through a blockchain. PHX transactions are being implemented on a platform specifically designed to connect publicly traded banks with rural banks, reinforcing financial inclusion and ease of transactions.
Faith in the crypts
PHX is a stable store of value and medium of exchange that can be programmed with automatic execution logic. Its value is backed and guaranteed by the Philippine peso at all times. The ability to support a relatively stable fiat makes the protocol centralized and manipulable, but eliminates unwanted volatility issued by crypto markets.
Successful transactions of three rural banks in the network were recorded and revitalized Union Bank’s faith in its technology.
It is said that the use of an immutable accounting book greatly facilitates the audit, compliance and reconciliation of previous statements. The protocol is only available for rural participants in the platform.
PHX has been designed to be interoperable and can be incorporated into various exchanges and wallets in the future as a way of conducting transactions and protecting against volatility.
Union Bank aims to promote financial inclusion and make transactions easier and more profitable for those who live in rural or remote areas. As part of a sustained effort by the government for financial inclusion, Union Bank used blockchain tokenize fiat to send OCBC Bank in Singapore to an account holder in a remote coastal region in the Philippines.
Cryptocurrency versus decentralization
The trend in the last year has shown us that banks do not oppose cryptocurrencies and the use of distributed accounting books, apparently only oppose decentralized protocols that they cannot control.
Not surprisingly, a bank has launched its own cryptocurrency, especially after all free cryptographic marketing publications were given to JP Morgan after the launch of JPM Coin.
Regulators are likely to remain in place when it comes to ending bank crypts even though the money laundering potential is greater than that of a decentralized protocol.