cointelegraph.com
The Bank of the Philippine Islands (BPI) is planning to pilot a stablecoin-based settlement rail for cross-border payments to freelancers, virtual assistants and other workers receiving overseas income, according to local media reports.
Developed with global digital clearinghouse Meridian, the system is intended to reduce the cost and processing time of inbound payments while retaining safeguards used in traditional banking transactions, according to ABS-CBN and the Philippine Daily Inquirer.
Stablecoins would be used as a settlement instrument before the funds are converted to Philippine pesos and credited to recipients’ BPI accounts.
BPI President and CEO Jose Teodoro Limcaoco said exploring stablecoin rails was a natural extension of the bank’s digitalization strategy, adding that the bank aims to make funds arrive faster and more cheaply without compromising security.
The pilot will initially focus on payroll and other overseas earnings, with BPI planning a broader rollout ahead of the 49th ASEAN Summit in November.
The bank said it would coordinate with the Bangko Sentral ng Pilipinas, the nation’s central bank, while any wider rollout would depend on consumer protection, stablecoin reserve transparency and other regulatory safeguards.