Stablecoin News – On July 12, 2025, the Bangko Sentral ng Pilipinas (BSP) announced plans to integrate USD-pegged stablecoins, such as Circle’s USDC, into its remittance framework to reduce costs for migrant workers.
The Philippines, a remittance-dependent economy with $36 billion in annual inflows, aims to leverage stablecoins’ low fees—under 0.1% versus 6.6% for traditional transfers—to support its 2.2 million overseas workers.
The initiative aligns with Southeast Asia’s growing stablecoin adoption, where USDT and USDC power remittances and purchases.
The BSP’s move follows Singapore’s licensing of DBS Bank’s SGD-pegged stablecoin and Hong Kong’s $1.2 billion in stablecoin issuance, reflecting a regional push for digital finance.
The central bank is exploring partnerships with licensed exchanges like Coins.ph, which processed $8 billion in stablecoin transactions in 2024, to ensure KYC/AML compliance.
The BIS’s June 24 warning about stablecoin risks, including potential bank runs, underscores the need for robust oversight, which the BSP plans to enforce via sandbox testing before full adoption.
Stablecoins’ $28 trillion in 2024 transaction volume highlights their potential to transform remittances, particularly in Southeast Asia, where underbanked populations rely on digital payments.
The Philippines’ initiative competes with dollar-based stablecoins dominating 90% of the $253 billion market, but local integration could enhance financial inclusion.
Challenges include regulatory alignment with global frameworks like the EU’s MiCA and the U.S.’s GENIUS Act, as well as addressing scams, as seen in Shenzhen’s July 7 alert.
The BSP’s exploration could set a precedent for ASEAN countries like Cambodia, where stablecoin remittances are rising.
Success hinges on balancing innovation with security, ensuring stablecoins complement the BSP’s e-Peso CBDC pilot.
The initiative positions the Philippines as a stablecoin leader in Southeast Asia, with potential to drive economic growth if regulatory and adoption hurdles are overcome
