Remote worker Maria, a freelance graphic designer in the Philippines, often waits days for her overseas payments to clear and sees a chunk vanish in fees. BPI, one of the country’s largest banks, wants to change that by testing a system that uses stablecoins to speed up these cross-border payments while cutting costs.
The bank recently launched a pilot program targeting freelancers, virtual assistants, and informal economy workers who rely on international income. By partnering with Meridian, an international clearing firm, BPI aims to process payments abroad using stablecoins before converting the funds into Philippine pesos for deposit into customers’ accounts. This reduces the typical delays and expenses charged by traditional remittance services.
Unlike cryptocurrency exchanges where users handle digital tokens, BPI’s approach shields customers from managing any digital assets directly. When a payment is made, the stablecoin acts as an intermediary settlement layer between sender and recipient. Then BPI credits the local currency directly into the recipient's bank account, keeping the entire experience within familiar banking channels.
José Teodoro Limcaoco, BPI’s CEO, highlighted that this pilot aligns with the bank’s push for digitalization, aiming to speed up receiving funds from abroad while maintaining strict security and compliance with Bangko Sentral ng Pilipinas (BSP) regulations. The central bank’s oversight ensures consumer protections are upheld and that stablecoin reserves are transparent, addressing ongoing regulatory concerns about cryptocurrencies in the region.
Will Haering, CEO of Meridian, emphasized the ability to integrate stablecoin technology within existing banking infrastructure, preserving reliability and safeguarding customers throughout the process. BPI plans to expand the pilot ahead of the 49th ASEAN Summit in November, showcasing the project as part of its innovation efforts in digital banking development.
This initiative arrives amid tighter regulations on virtual asset service providers by the BSP, including mandatory due diligence before listing cryptocurrencies. It reflects a cautious but progressive move towards embracing blockchain-based solutions within established financial frameworks.
