CryptoPeso® (PHPc) is a stablecoin backed by Philippine Peso (PHP) with a unique feature. It is unlike traditional cryptoassets whose values depend on the exchanges, whereby making them volatile and speculative.
CryptoPeso is not an investment vehicle since PHPc is not a tradable asset, it is not sold or bought, and it does not require crypto exchanges just to turn it into fiat. PHPc is simply a tokenized PHP for more secured, fast and efficient payment transfers between person to person or customer to merchant. Since it is backed up by Philippine Peso, it can be converted to fiat anytime you want using our CryptoPeso Mobile app for Android, and can be encashed through various cash out methods including bank deposits, money transfer outlets, or other third-party e-money wallet services.
Taking fiat into blockchain, leaving volatility behind
Let's accept the fact that most cryptocurrencies today are speculative and manipulative in value which makes them too volatile if the crypto exchanges are the ones that determine their actual value since there is no physical underlying asset that could guarantee their constant real worth. This is the primary reason why until now, there is still no total mass adoption of volatile cryptocurrencies like Bitcoin because merchants will find it hard to gamble and accept Bitcoin in exchange for goods knowing the fact that the value of BTC can drastically drop in an instant. That is why Bitcoin has become a store of value rather than a tool for micropayments.
Another one of the challenges cryptocurrencies face today which prevents them from achieving total mass adoption is the difficulty in converting these digital assets or tokens back to fiat and use them in real world situations, since not everyone is still willing to accept them as valid payment method. Although you can trade them on the exchanges, but that doesn't guarantee someone will buy them immediately at the price you desire.
Thus, stablecoins were born. They are usually pegged at 1:1 with fiat such as the US Dollar which makes them safe for merchants since the token value is guaranteed not to go below the fiat counterpart. Another advantage of a stablecoin is the assurance that there is always a fiat backing it up and that you may be able to convert it to fiat anytime you want with no loss of value.
CryptoPeso, with the symbol PHPc, is a stablecoin that does not rely on exchanges to determine its value, and it has a unique feature that makes it "not" totally stable. Find out how below.
A stablecoin whose value continually increases as transactions grow
CryptoPeso (PHPc) is a smart asset on the WAVES Platform.
PHPc, a stablecoin backed up by Philippine Peso (PHP), is based on a unique concept whose value does not depend on crypto exchanges. PHPc is formulated on a dynamically increasing valuation since the price is congruent to the amount of PHP backing it up, which is incremented by each transaction in the network, thereby making the value of PHPc incremental as well.
PHPc has a consistent valuation of 1 PHPc ≥ 1 PHP. Which means, unlike other stablecoins that are pegged at 1:1 with fiat currency, the value of 1 PHPc can never be lower than 1 PHP but its value will always be greater than, if not equal to, 1 PHP. Still, its value can go higher over time, but never below 1 PHP. We can achieve this by ensuring the amount of PHPc in circulation will always be less than or equal to the amount of PHP backing it up. There can never be more PHPc than the PHP, that could drag the value of 1 PHPc less than 1 PHP.
This gives PHPc two distinct advantages and can solve the problems cryptocurrencies are facing today. First, PHPc is great for micropayments and safe for merchants to accept since they are guaranteed that PHPc will never devalue, and they can convert it to PHP anytime they want.
Secondly, PHPc can work like a bank account with no promise of interest rates but with incremental value over time. Unlike time deposits in banks that you can not withdraw to receive interest in a span of several months, with PHPc you can withdraw it anytime you want and still receive the same potentially increasing value if you just keep your PHPc in your wallet.
How CryptoPeso® Works
We can achieve the formula of 1 PHPc ≥ 1 PHP through the following simple steps:
Customer cashes in fiat into his or her PHP wallet through any method of choice.
Customer may optionally convert PHP to PHPc and pays minimal conversion fee.
Customer sends PHP or PHPc to Merchant as payment for goods or services.
Merchant may convert PHPc to PHP and pays minimal conversion fee.
Merchant cashes out the PHP in any method of choice.
Portion of their conversion fees are deposited back to the PHP pool thereby increasing the funds and ratio of PHP over PHPc.
This is just an overview of how PHPc works. More technical details will be provided in the future. Note that there is no buying or selling of token happening, only real time conversion so both the fiat and PHPc tokens are still yours and you are free to do what you please.