Smart contract platform RSK gets ready to bring Filipinos more of a new asset in stablecoins

Published November 8, 2021, 1:23 PM

by MB Technews

Smart contract platform RSK gets ready to bring Filipinos more of a new asset in stablecoins

Open-source smart contract platform RSK is excited to announce that it will help expand stablecoin options for Filipinos as the platform slowly expands its Philippine presence in the coming months.

Stablecoins are digital currencies whose value is pegged to assets like fiat currencies, precious metals, or even other cryptocurrencies. Stablecoin’s structure is as opposed to other cryptocurrencies whose value is driven only by market supply and demand and is often subject to wild swings of volatility. Stablecoins also play a central role in driving the crypto economy as their ties to real-world fiat currency imbibes a degree of trust in people who might be wary of the volatility found in popular cryptocurrencies like bitcoin. Many leading stablecoins such as Tether (USDT), and USD Coin (USDC) have already been used by companies as legitimate means of payment.

Many proponents of stablecoins argue that the medium is the best way to combine the stability of fiat currencies and real-world assets with the convenience afforded by cryptocurrencies. RSK is eager to add to the number of stablecoins available for Filipinos and give them the benefits of a truly unique asset class.

According to Asia Partner and Adoption Marketing Manager at IOV Labs (the company behind the RSK platform) Estelle Reynal stablecoins are a valuable potential tool for financial inclusion. “Stablecoins have the accessibility of cryptocurrencies in that you only need a device and internet connection to transact,” Reynal said. “Combined with their comparative stability, you have a perfect way for Filipinos to start their digital currency journey and leverage another asset class.”

Currently, several stablecoins are present in the RSK ecosystem. The RSK blockchain-based Money on Chain platform, for example, offers the Dollar on Chain (DOC) stablecoin that is collateralized with bitcoin itself. The DOC stablecoin then carries all unique value propositions of bitcoin (decentralization, user-custody) while protecting itself from market volatility.

Notably, there are 4 major tokens within the Money on Chain ecosystem: the US dollar-pegged DOC, bitcoin-tracking BitPro, BTCX (which is pegged to RSK native token RBTC), and the MOC token itself that allows its holders to participate in the governance of the platform.

Other stablecoins in the RSK ecosystem include the RIF Dollar on Chain (RDOC) and Babelfish. RDOC is a stablecoin that is pegged to the USD at a ratio of 1RDOC = 1USD, minted after the RIF token is staked as collateral for using services within the RIF DeFi ecosystem. Meanwhile, Babelfish is a cross-chain stablecoin protocol designed to foster liquidity across different blockchains. The Babelfish protocol currently accepts major stablecoins from leading smart contract platforms such as Ethereum, Binance Smart Chain, and RSK.

In the Philippines, stablecoins have so far been used for remittances. Virtual currency exchange allows OFWs to send remittances in USDC, with low blockchain transaction fees affording OFWs a ton in savings (as opposed to having to send through a traditional money transfer service). Additionally, transactions occur in real-time thanks to the power of blockchain.

Even local banks such as UnionBank have launched their own stable coin initiatives, in order to grant rural banks easier access to remittance and payments. UnionBank account holders were also granted the ability to buy and sell stablecoins.

Reynal is optimistic that RSK’s growing presence in the Philippines—both the platform’s localized Facebook page and Telegram community have seen a steady rise in numbers—will open new doors for Filipinos. “Acceptance of digital currencies is growing around the world each day,” Reynal said. “Stablecoins are a chance for the ordinary Filipino to be a part of the future of finance.”