Wed. Nov 13th, 2019

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CryptoPeso, the First Decentralized Stablecoin in the Philippines

7 min read

CryptoPeso Stablecoin

Today, we have a quick interview with Larrimar Tia founder of Blockxperts, a software and blockchain development company registered in the Philippines, and the developer of CryptoPeso Stablecoin. 

Hello Larrimar, please, tell us about CryptoPeso as a decentralized stablecoin.

CryptoPeso (PHPc) is an asset on the Waves Platform that is backed up by Philippine Peso (PHP) and can be considered as the first decentralized stablecoin since it is not controlled by any local bank or central authority. There is already another stablecoin in the Philippines being used by a bank for remittance purposes, similar to how XRP works, but the bank is the one controlling the chain. Ours is different as it is running on the Waves Platform. Therefore, you have the power to keep your CryptoPeso asset in any wallet that you control, and that supports the Waves token. 

Is CryptoPeso listed on a crypto exchange?

No. CryptoPeso is not a tradable asset, it is not sold or bought, and it does not require crypto exchanges to turn it into fiat. CryptoPeso is simply a tokenized Peso for more secure, fast, and efficient payment transfers from person to person or customer to the merchant. Since it is backed up by Philippine Peso, it can be converted to fiat anytime you want and can be encashed through various cash out methods anywhere in the Philippines.

What is the primary objective of CryptoPeso, and what makes it different from existing stablecoins or local e-money services?

First of all, according to our central bank, the use of e-money in the Philippines has already surpassed that of credit cards, so this is one great news for the digital cash industry in general. However, most of our e-money services in the Philippines still rely on the traditional banking network and brick-and-mortar money transfer outlets, which are too costly and very centralized in nature. These conventional methods pose several risk factors such as user account suspensions, fund irretrievable if you become a victim of phishing, money transfer limits, and more.

Although CryptoPeso aims to capture a piece of the billion-dollar remittance industry in the Philippines, that is not our primary objective. What we want to solve is the burgeoning problems on the users’ perspective and the recipients of remittances due to the difficulties they encounter in using the existing e-money and remittance services, especially on the aspect of the unbanked population. We have had several cases of accounts being suspended for no valid reason, remittances unclaimed due to lack of government IDs, and more. 

These are the areas we want to tackle and the problems we want to solve with CryptoPeso using blockchain technology.

You mentioned there is already an existing stablecoin in the Philippines, can you give me one good reason why I should use CryptoPeso instead of the existing one? 

Speaking of stablecoin in general, such as the USDT and others, they usually are pegged with fiat currency at 1:1 ratio, which makes them “stable” in value. So whatever amount you hold, you own the same amount of its fiat counterpart.

Ours is unique. It is unlike traditional crypto assets whose values depend on the exchanges, whereby making them volatile and speculative; and it is also unlike conventional stablecoins whose value never increase. CryptoPeso is formulated on a dynamically growing valuation since the price is corresponding to the amount of Peso backing it up, which is incremented by each transaction in the network, thereby making the value of CryptoPeso incremental as well, but never goes down.

To be a bit more specific, every time a transaction occurs on our platform, portion of the transaction fees goes to our Peso pooled funds backing up CryptoPeso, which slightly increases the ratio between the two, therefore, increasing the value of our stablecoin – since the circulating supply does not change, but the fiat backing it up increases. 

This gives CryptoPeso two distinct advantages and can solve the problems cryptocurrencies are facing today. First, CryptoPeso is great for micropayments and safe for merchants to accept since they are guaranteed that CryptoPeso will never devalue, and they can convert them to Peso anytime they want. Secondly, your CryptoPeso asset can increase in value if you keep them in your wallet, like a time deposit in a bank, but encashable anytime.

Sounds very interesting. Now, besides some of the problems you want to solve present in other e-money services, what other use cases do you plan to implement with CryptoPeso?

I mentioned a while ago that our existing e-money services still rely on the traditional methods of sending money, making them centralized. With CryptoPeso, we want to take advantage of blockchain technology, especially in terms of security and its decentralized nature. One of the significant projects in our pipeline is a totally different concept of how we move money. We want to give the power back to the people by eliminating costly means of sending cash, and the problems of the unbanked where most of them can’t even send or receive money through whatever mean available. This is a very ambitious project and could disrupt our local remittance industry if adequately implemented and marketed.

We are talking here financial, and when it comes to finances, the Central Banks always have the final say. Since blockchain is unregulated in its generality, how do you plan to cope up with regulators in your country?

As of now, we are not yet regulated by our Central Bank, as getting necessary licenses and permits requires enormous funding, and as a startup, we are not yet on that level of capacity to acquire them. We are open though to venture capitalists and investors who can help us fund this project and obtain necessary regulatory permits. However, acquiring them can also affect our primary objective as being regulated by a central bank will automatically eliminate the decentralized nature of our platform. This topic is tough to discuss and full of gray areas. For example, are we aiming to satisfy the regulators, or are we going to solve the problems the end-users face due to stringent regulations by our government? It’s a “chicken and egg” or “Catch-22” scenario actually, wherein if we satisfy the regulators, we won’t be able to implement our objectives, but if we pursue our goals, the regulators won’t agree with our use case.

Speaking of venture capitalists or investment opportunities, at what stage is your startup now, and how do you plan to find additional capital infusion to ensure your project evolves smoothly?

We are still in the seed stage, and we are working with a few private individuals who share the same interest with our proposed roadmap and use cases. However, we still lack enough funding to fully implement all our ideas and concepts as quickly as possible, so we are doing things on a slower phase but making sure we have enough gasoline to reach the finish line. So far, we have implemented a crowdfunding program using affiliate marketing to help us generate the needed gas to keep on going and accumulate as many users as we can to make our platform more and more attractive to potential investors.

So far, your project sounds not only exciting but very promising as well. Any closing remark for our readers?

Yes. First of all, I would like to invite them to visit our web site at https://cryptopeso.com.ph and learn as much as they can about our projects and use cases. Since our concept is new to crypto enthusiasts who always think cryptocurrencies should automatically be on exchanges, I would like to give them a heads up that CryptoPeso is unlike all the traditional cryptocurrencies they got used to. CryptoPeso works just like any cryptocurrency less the volatility present on crypto exchanges, and unlike conventional stablecoins that never decrease or increase in value, ours increases in value over time as more and more transactions occur on our platform, since the portion of the transaction fees in our network is shared among all CryptoPeso holders.

I would also like to invite them to download our Android app found on Google Play Store where they can sign up for a free account and use it to cash in fiat and send or pay someone, just like any of our existing local e-money services. They can use the app for free to send and receive Peso without the need to hold any CryptoPeso tokens. The app also has built-in merchant productivity tools such as a Loyalty Points System for awarding and redeeming Reward Points to and from customers, and Money Manager to help them manage their cash flow. More tools are in the pipeline. However, these tools require a small, one-time activation fee to help us raise funding for our project development.

If they have further questions, they may get in touch with us through our web site or our social media pages.

I hope they enjoy using our platform as much as we enjoy its continuous developments and enhancements. Thank you.


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