Coins.ph added bitcoin and ethereum to the Philippines' QR Ph network, enabling users to spend both cryptocurrencies across nearly 700,000 retail merchants nationwide. The expansion follows an April rollout that initially linked stablecoins USDT and USDC to the country's standardized payment infrastructure. The integration aims to shift digital assets from speculative investment tools to functional retail payment methods, while the Bangko Sentral ng Pilipinas (BSP) issued a new memorandum tightening oversight of virtual asset service providers through stricter screening and monitoring standards.
Coins.ph Expands QR Ph Network to Bitcoin and Ethereum
Coins.ph extended the QR Ph infrastructure to support bitcoin and ethereum following the April rollout that connected USDT and USDC to the network. The expansion allows consumers to spend stablecoins and the two largest cryptocurrencies by market capitalization across nearly 700,000 merchants.
Initial data from the program's early weeks showed thousands of retail transactions totalling millions of Philippine pesos. According to Coins.ph, transaction logs reflect diversified consumer spending habits, with users deploying digital balances for grocery settlements, school tuition payments, and home appliance purchases.
The infrastructure relies on real-time backend liquidations to navigate price volatility associated with non-stablecoin assets. Coins.ph CEO Wei Zhou credited the mechanism with shielding both consumers and merchants from real-time market fluctuations.
"The true 'Aha!' moment for our community occurs when they realize they no longer need to manually sell their crypto to a PHP balance first," Zhou said. "This automation removes the psychological barrier of cashing out, allowing stablecoins to finally function as actual money rather than just a speculative trading pair."
Transaction Data Shows Diversified Consumer Spending
Zhou noted that the inclusion of bitcoin and ethereum revealed a distinct dual-use case within the domestic market. A significant portion of the population continues to treat cryptocurrencies like bitcoin as long-term speculative investments, while an emerging segment of crypto-native earners—including freelancers, remote workers, and gig economy participants—utilizes the direct-spending feature to bypass multi-step fiat conversion pipelines.
Fintech analysts view the interoperability milestone as a test case for the commercial viability of digital currencies in regions characterized by high remittance volumes and large unbanked populations. Regional financial technology firms are seeking to shift cryptocurrencies from investment portfolios to functional retail tools by embedding digital assets directly into a state-backed payment framework.
BSP Issues New Memorandum Tightening VASP Oversight
The BSP issued a memorandum ordering virtual asset service providers to implement stricter screening, monitoring, and delisting standards for all tokens and coins offered to local consumers. The central bank's directive mandates a due diligence process based on six key pillars: issuer background, market maturity, use cases, transparency, traceability and security, and legal compliance.
The BSP banned anonymity-enhancing privacy tokens and required platforms to set thresholds to trigger immediate suspension or delisting of assets during adverse market events, cybersecurity threats, or regulatory non-compliance.
"In markets with tightening restrictions, we take an engagement-first approach, working closely with local authorities to demonstrate how a transparent, blockchain-based system actually enhances anti-money laundering and consumer protection efforts," Zhou said. "Regardless of the jurisdiction, our goal is to maintain a compliance-first DNA that adapts to local nuances ensuring that we always operate as a responsible gateway to the digital economy."
The BSP guidelines place emphasis on fiat-backed digital assets, requiring service providers to evaluate the minting, issuance, redemption, and reserve verifiability of stablecoins to maintain public trust.
Coins.ph Completes PHPC Stablecoin Testing Phase
Coins.ph completed the testing phase for its Philippine Peso-backed stablecoin (PHPC) within the BSP regulatory sandbox. The company is in the final stages of securing permits from the central bank to officially exit the sandbox. Subject to those approvals, the domestic asset is positioned to serve as a primary retail settlement tool.
"While USDT and USDC provide our users with excellent exposure to dollar-backed stability, PHPC will serve as the natural bridge for local commerce by eliminating the foreign exchange spreads typically associated with dollar-pegged assets," Zhou said.
The company intends to list PHPC alongside USDT and USDC inside the national QR Ph ecosystem.
Regulatory Alignment Serves as Institutional Proof of Concept
The regulatory alignment with the central bank-backed QR Ph network served as a proof of concept for corporate partners. The deployment demonstrates that direct crypto spending can be scaled within existing compliance and point-of-sale systems, lowering structural barriers for institutional payment firms evaluating blockchain-based retail infrastructure.
Transaction volumes remain a small fraction of the broader domestic electronic payments market. Market regulators and participants are monitoring spending patterns and liquidity demands to assess how broader retail integration impacts consumer financial behavior under the tightening oversight framework.
FAQ
What did Coins.ph add to the Philippines' QR Ph network?
Coins.ph added bitcoin and ethereum to the QR Ph network following an April rollout that initially connected USDT and USDC stablecoins. The expansion allows users to spend these cryptocurrencies across nearly 700,000 retail merchants nationwide.
What new regulations did the BSP issue for virtual asset service providers?
The BSP issued a memorandum requiring virtual asset service providers to implement stricter screening, monitoring, and delisting standards based on six key pillars: issuer background, market maturity, use cases, transparency, traceability and security, and legal compliance. The central bank banned anonymity-enhancing privacy tokens and required platforms to set thresholds for immediate asset suspension during adverse events.
What is the status of Coins.ph's PHPC stablecoin?
Coins.ph completed the testing phase for its Philippine Peso-backed stablecoin (PHPC) within the BSP regulatory sandbox. The company is in the final stages of securing permits from the central bank to officially exit the sandbox, with plans to list PHPC alongside USDT and USDC in the QR Ph ecosystem.
