It is with great excitement that we have launched the first cryptocurrency pegged to the Philippine Peso. The Philippine stablecoin called peg.PHP is now the second stablecoin launched by the company. In March, Bitspark also started to support Hong Kong's first stablecoin, sparkdex.HKD. As a blockchain money transfer company, stablecoins play an important role in the on-boarding process for Bitspark's products and services.
Stablecoins are cryptocurrencies pegged to the price of fiat currency so when someone deposits cash, they get the equivalent back without exposure to price fluctuations. This means that when you deposit 1000 of Philippine Peso (PHP), you receive 1000 stable.PHP that can then be sent, received or exchanged.
While stablecoins have a number of practical use cases, they are predominantly used as a means to hold balances on exchanges and weather the volatile markets of cryptocurrency, plus they also provide an excellent use for exchanging between currencies without volatility risk. The problem to solve for money transfer companies to reduce costs for customers is cutting out the middlemen as well as reducing the number of times one has to exchange between currencies. In the case of using Bitcoin, a non-stable cryptocurrency, a money transfer would go through several exchanges (deposit fiat via bank, buy crypto, sell crypto for fiat and withdraw) which can end up to be just as expensive as using traditional banking depending on how the market swings. Stablecoins removes this by providing a direct exchange between fiat stablecoins and in effect reducing steps it takes for conversion.
The Hong Kong to Philippines corridor was the first corridor Bitspark began its crypto money transfers in. With around 300,000 Filipinos in Hong Kong sending money to the Philippines every month, it is only fitting that the company launched Philippine's first stablecoin stable.PHP and Hong Kong's first stablecoin sparkdex.hkd.
August 2019 Update: UnionBank - one of the top banks in The Philippines - has been working on creating its own stablecoin pegged to the Philippine Peso. But it has a very different focus compared to stable.PHP, learn more here.
With both PHP and HKD stablecoins available on Bitspark web platform, anyone can now deposit by cash, cryptocurrency or bank and receive sparkdex.HKD and peg.Php easily. From there you can exchange between stablecoins or even buy and sell Bitcoin, Ethereum, Bitshares or ZEPH. We look forward to bringing more innovation to the money transfer industry and driving much-needed change to the space.
Read more about Bitspark's epic journey here;
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Bitspark is a bankless money transfer ecosystem that enables businesses and people to cash in and cash out cryptocurrencies across Asia and Africa.