Bank of the Philippine Islands (BPI) is preparing a stablecoin settlement pilot aimed at cutting costs and speeding up payments to Filipino remote workers overseas. The project targets a persistent pain point for the millions of overseas Filipino workers (OFWs) and remote employees who send money home: slow, expensive cross-border transfers.
Why a stablecoin?
Stablecoins are digital tokens designed to hold a steady value, typically pegged to a fiat currency like the U.S. dollar or the Philippine peso. By using a stablecoin for settlement, BPI hopes to bypass the traditional correspondent banking network, which can add days of delay and multiple layers of fees. The pilot would let the bank settle payments almost instantly and at a fraction of the current cost.
BPI has not disclosed the specific stablecoin it will use or whether it will issue its own token. The bank said only that the pilot will test a stablecoin-based settlement system for overseas payments to Filipino remote workers.
Addressing a key pain point
Overseas Filipino workers sent home roughly $37 billion in 2023, according to central bank data. Many rely on remittance services that charge an average of 5% to 7% per transaction and can take three to five business days to clear. For remote workers paid in foreign currencies, the exchange rate markups add another hidden cost.
BPI's pilot aims to shrink both the time and the cost. If successful, the bank could offer near-instant settlement at a fraction of traditional fees. The bank has not said whether the service will be available to all customers or only to specific corporate clients.
The pilot is still in the preparation stage. BPI has not announced a launch date or named any technology partners. The bank will need to navigate Philippine regulations on digital assets and stablecoins, which are still evolving. Bangko Sentral ng Pilipinas (BSP), the central bank, has issued guidelines for digital payment tokens but has not yet finalized a comprehensive stablecoin framework.
BPI's move comes as other Philippine banks and fintechs explore blockchain-based payment rails. The country has been an early adopter of digital payments, with BSP pushing for a cash-lite economy. Whether the stablecoin pilot leads to a full commercial rollout will depend on the test results and regulatory clarity.
