Smart contract platform RSK’s expansion throughout the Philippines will result in more access to stablecoins for investors living in the country.
Given their peg to existing assets such as fiat currencies, precious metals and, on occasion, other cryptocurrencies, stablecoins are less vulnerable to the wild fluctuations commonly seen in crypto that attracts some investors yet repels others. That added safety helps build trust among the uncertain. 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 said it 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.”
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 the unique value propositions of Bitcoin (decentralization, user-custody) while protecting itself from market volatility.
There are four 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 ecosystem include the RIF Dollar on Chain (RDOC) and Babelfish. RDOC is a stablecoin 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 smart contract platforms such as Ethereum, Binance Smart Chain, and RSK.
In the Philippines, stablecoins have so far been used for remittances. 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 said she is optimistic that RSK’s growing presence in the Philippines 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.”