UnionBank’s Blockchain Breakthrough: Cross-Border Remittances Made Easy

Understanding the Pilot Initiative

UnionBank has recently taken a significant step towards modernizing financial transactions by completing a pilot project focused on cross-border remittances. This initiative connects the Philippines and Singapore through cutting-edge blockchain technology. The collaboration with OCBC Bank, a Singapore-based financial institution, resulted in utilizing the Adhara liquidity management and international payments platform along with UnionBank-UBX’s innovative i2i platform.

Tokenized Fiat for Seamless Remittances

The remittance process was enhanced by leveraging a blockchain-based tokenized fiat, effectively facilitating transactions from OCBC Bank to a rural account holder at Cantilan Bank in the Philippines. This novel approach not only streamlines payments but also aims to boost financial inclusion among the unbanked population in the country.

Empowering Rural Banks

Melchor Plabasan from the Bangko Sentral ng Pilipinas highlighted the significance of this pilot project, noting the potential for increased adoption of blockchain technology in payment systems. Senior VP of UnionBank, Arvie de Vera, echoed this sentiment. He declared, “With the pilot’s use of i2i, rural banks can now receive direct-to-account remittances, and this is only the beginning.” This connectivity will enable rural banks to access a myriad of banking services that were previously out of reach.

Inclusivity in Financial Services

The broader goal of this initiative is to serve the millions of Filipinos who remain unbanked. By linking rural banks to the national financial network, UnionBank’s pilot project aims to create new opportunities for financial services utilization. This shift could ultimately enhance the overall economic landscape.

A Look Ahead: Cryptocurrency Innovations

On a related note, Bitspark is on the verge of launching an exciting new cryptocurrency pegged to the Philippine peso, called “peg.PHP.” This innovation promises consumers the capability to use a stablecoin for various transactions, including paying bills, making the blend of traditional finance and digital currency even more accessible.