Huaren Capital had entered the Philippines' business territory to expand its crypto mining business. But the Chinese firm has found another purpose on the sideways.
The crypto giant plans to launch a digitized version of Philippino Peso called "Digital Peso" in the first half of 2019, reported Inquirer. The coin, whose per unit value would likely be pegged to 1 Peso, would be a base currency of a proposed two-way remittance corridor between China and the Philippines.
Jeff Wang, the president of Huren Capital, confirmed the report during a press meet held on Wednesday, stating that they were speaking with potential partner-banks as well as Philippines central bank for their project. However, he refused to reveal the names of the banks, but recognize their plan for carrying the potential of reducing international transaction fees for the world's third top remittance receiving country.
“In China, they have electronic payments systems like Alipay and WeChat Pay, so the transfer of funds is effortless," Wang explained through a translator. "We understand in the Philippines, many Filipino citizens don’t have a bank account, and when they transfer funds from one country to another or from one place to another, there’s always a high remittance fee incurred, so we are working towards reducing that kind of cost for the average Filipino citizen."
The blockchain tycoon also recognized Chinese people working in the Philippines as their potential customers, stating that the opportunities would also be open for them as much as they are open for the Filipinos.
Huaren Capital has established its headquarters in Manila, the capital of the Philippines, following a successful visit of Chinese President Xi Jin Ping to the country. Wang established that the host government was open to their blockchain initiatives in the state and decided to put their company in their special economic zone.
"The Philippines regards blockchain innovation as a national strategy, providing a large number of preferential policies and services to related companies, and solving the regulatory problems faced by the blockchain industry,” he explained.
According to Wang, they are now seeking a regulatory approval for their digital peso project from the Bangko Sentral ng Pilipinas (BSP). Also, they expect to finalize their partnerships with the local banks at the start of 2019 while aiming a full-fledged launch before June.
"We hope that this will bring the Philippines to the forefront of e-commerce around the world,” he added.
The country maintains circa $33 billion of remittance inflows every year, according to a World Bank report.
Featured image from Shutterstock.