Philippines’ Rizal Commercial Banking Corporation (RCBC) was among six banks that signed letters of intent to issue stable coin on IBM’s Stellar-powered blockchain platform, World Wire. This according to Jesse Lund, Vice President of IBM Blockchain, Forbes reports.
In a keynote address at the Money 2020 Asia in Singapore, Lund, alongside Stellar co-founder Jed McCaleb, said that a total of 44 international banks, RCBC included, are currently using IBM’s platform to process point-to-point payments.
“We’ve created a new type of payment network that is unique in the sense that it streamlines the ability of businesses and consumers to move money around the world in real time,” Lund explains in an interview with Forbes.
Lund says that through their platform, banking institutions can explore different opportunities for growth such as issuance of cryptocurrencies.
RCBC, for its part, expressed excitement over being the first Philippine bank to issue Philippine Peso-backed stable coin using blockchain technology.
“RCBC is pleased to be an early innovator with plans to issue our own Peso stable coin on World Wire, pending final approval from our regulators, ” said RCBC Global Transaction Banking Group Head Emmanuel Narciso in an interview with Forbes.
“We’re focused on innovation that adds value for our customers, and World Wire presents a tremendous opportunity to transform and enhance our payment infrastructure, ” he added.
A stable coin is a cryptocurrency that is pegged to a particular asset like a fiat currency or gold. This way, it does not fluctuate as erratically as other cryptocurrencies such as Bitcoin or Ether. RCBC intends to use the Philippine Peso as the currency attached to its stable coin.
Upon receiving consent from respective regulatory bodies, RCBC, alongside six other international banks, will be able to issue stable coin via IBM’s World Wire.
This means stable coin on the World Wire network will be available in various currencies including Philippine Peso, Korean Won, Indonesian Rupiah, Euro, and Brazilian Real.
This would also make remittances, one of the main economy drivers in the Philippines, a lot faster and cheaper.
While RCBC continues to explore what can be achieved with their Philippine Peso-backed stable coin, Lund expressed IBM’s capacity to introduce other cryptocurrencies on their network.
In an interview with Forbes, he said that cryptocurrencies could be a viable settlement instrument that is why they are starting with Stellar’s own asset, Lumens. Lund says that it is only a matter of time when other cryptocurrencies like the Bitcoin and Ether will be introduced on World Wire.
RCBC remains hopeful that it will receive regulatory consent in the next few months. It finds itself in the same situation as Brazil’s Banco Bradesco and South Korea’s Bank Busan, two other banks that were identified by Lund that signed the same letter of intent.