The First Filipino Cryptocurrency: PHX and the Birth of the Philippines’ Digital Asset Revolution in 2019, UnionBank’s Blockchain Innovation
Introduction
The Philippines has rapidly evolved into one of Southeast Asia’s most crypto-friendly nations. With a tech-savvy population, high mobile phone usage, and millions of overseas Filipino workers (OFWs) sending remittances home, the country has become a fertile ground for digital finance innovation. While global names like Bitcoin and Ethereum dominate headlines, a quieter yet more revolutionary milestone was achieved by Filipinos themselves—the creation of the first Filipino cryptocurrency.
This groundbreaking project is known as PHX, a stablecoin developed and launched by UnionBank of the Philippines in 2019. Unlike speculative cryptocurrencies, the first Filipino cryptocurrency was built with a clear purpose: to enable seamless, fast, and secure transactions between local banks, especially those in remote areas. It became the Philippines’ first bank-issued digital asset, backed 1:1 by Philippine pesos, making it the first of its kind in the country.
PHX marked the Philippines’ transition from being a participant in the global crypto market to becoming a creator of blockchain-based financial solutions. It was not just about innovation—it was about financial inclusion, bridging the digital divide, and proving that blockchain could serve real economic needs.
The Rise of Cryptocurrency in the Philippines
Early Awareness and Adoption
Cryptocurrency awareness in the Philippines began around 2014–2015, when Bitcoin exchanges like Coins.ph and Rebit.ph introduced digital wallets and payment systems to local users. These platforms allowed Filipinos to buy, sell, and use Bitcoin for remittances, online shopping, and bills payment. For many, Bitcoin was an exciting alternative to traditional banks that charged high transaction fees.
By 2017, the crypto trend had exploded worldwide. The Philippine government, instead of banning digital currencies like some other countries, chose to regulate them. The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 944, recognizing virtual currency exchanges as legitimate financial service providers. This regulation was a turning point, encouraging innovation while protecting consumers.
As the crypto ecosystem grew, Filipinos started engaging with new blockchain applications—NFTs, play-to-earn games, and decentralized finance (DeFi). But even as adoption soared, the country lacked a homegrown digital currency that could function within the national banking system. This gap would soon be filled by UnionBank through the first Filipino cryptocurrency.
UnionBank and the Birth of PHX: The First Filipino Cryptocurrency
UnionBank’s Vision for Financial Inclusion
UnionBank has long been known as one of the most innovative financial institutions in the Philippines. Under the leadership of Edwin Bautista, the bank championed digital transformation long before “fintech” became a buzzword. The idea behind PHX was simple yet powerful—to create a blockchain-based token that could make interbank settlements faster, cheaper, and more transparent.
In July 2019, UnionBank officially launched PHX, calling it the first Filipino cryptocurrency created by a local bank. The coin was designed to be used within the bank’s blockchain network called i2i, short for “island-to-island.” The i2i platform connected rural banks to the main financial system using blockchain, addressing a long-standing challenge: limited access to digital banking in the provinces.
How PHX Was Built
PHX was developed on UnionBank’s internal blockchain infrastructure, ensuring that all transactions were transparent and traceable. Each PHX token was pegged to the Philippine peso—one PHX equaled one peso. This 1:1 ratio was maintained through reserves held by the bank, making PHX a stablecoin rather than a volatile cryptocurrency.
UnionBank emphasized that PHX, as the first Filipino cryptocurrency, was fully backed, auditable, and compliant with BSP regulations. This level of security and accountability set it apart from most cryptocurrencies circulating in the global market.
Launch and Initial Adoption
PHX debuted through pilot tests with three rural banks: Cantilan Bank, PR Savings Bank, and Summit Rural Bank. The results were promising—transactions that once took several days could now be completed in seconds. The use of PHX on the i2i network allowed banks in remote areas to send and receive money instantly without going through central clearing systems.
According to UnionBank’s Senior Vice President Arvie de Vera, PHX was envisioned as a “stable store of value, medium of exchange, and programmable token with self-executing logic.” In other words, the first Filipino cryptocurrency wasn’t just digital money—it was smart money.
(Source: UnionBank launches PHX stablecoin – Cointelegraph)
How PHX Works and Its Role in Digital Finance
PHX operates within the i2i blockchain network, which connects rural banks across the Philippines. The name “i2i” symbolizes “island-to-island,” representing the country’s archipelagic nature and UnionBank’s mission to bridge financial gaps through technology.
Core Features of PHX
- Stability: Each PHX is pegged 1:1 with the Philippine peso, backed by cash reserves held by UnionBank.
- Transparency: All PHX transactions are recorded on a permissioned blockchain visible to authorized banks and regulators.
- Efficiency: Transfers using PHX occur almost instantly, compared to hours or days in traditional systems.
- Security: Using blockchain ensures data integrity, encryption, and tamper-proof transaction records.
- Interoperability: The token can be programmed for automated settlements, compliance, and reporting.
Use Cases
- Interbank Transfers: PHX enables rural and cooperative banks to settle payments with each other seamlessly.
- Remittances: It simplifies OFW remittances from abroad.
- Payments: PHX serves as a digital representation of pesos for online and offline payments.
- Smart Contracts: Future versions can facilitate programmable financial services, such as loans and micro-insurance.
UnionBank’s PHX demonstrated how the first Filipino cryptocurrency could improve financial inclusivity. By enabling small banks to participate in digital settlements, it opened access to modern banking for millions of Filipinos living in underserved communities.
Other Filipino Crypto Projects: Beyond PHX
PHX may be the first Filipino cryptocurrency, but it inspired other projects aiming to localize blockchain solutions.
EPX: The Decentralized Cryptocurrency for Filipinos
In January 2021, the EPX coin was introduced by a group of Filipino developers. Unlike PHX, which is centralized and regulated, EPX is decentralized, operating on public blockchain networks. It was marketed as a crypto for everyday Filipinos—meant for peer-to-peer transactions, digital payments, and micro-investments.
(Source: Manila Bulletin – EPX Cryptocurrency launched in the Philippines)
While EPX lacked the institutional backing that PHX enjoyed, it demonstrated growing interest in creating Filipino-made digital currencies for broader use cases.
Yield Guild Games (YGG)
Although not a cryptocurrency per se, YGG is a globally recognized Filipino-led blockchain project. Founded by Gabby Dizon, YGG created a decentralized autonomous organization (DAO) focused on play-to-earn gaming. Its token, YGG, became one of the most successful blockchain assets originating from the Philippines, showing how Filipino talent is shaping the global Web3 landscape.
Other Emerging Tokens
Other local projects such as Moneybees, Paytaca, and BloomX have contributed to the Philippine blockchain ecosystem by offering crypto conversion, wallet services, and digital payments. Collectively, these ventures reflect the growing diversity of Filipino crypto innovation.
Government Regulation: BSP and SEC Framework
The success of PHX, the first Filipino cryptocurrency, would not have been possible without the proactive stance of Philippine regulators.
BSP Circular No. 944 and No. 1108
BSP first acknowledged cryptocurrencies in Circular No. 944 (2017), recognizing virtual currency exchanges as legitimate financial service providers. Later, in Circular No. 1108 (2021), BSP introduced updated rules aligning local regulations with global standards set by the Financial Action Task Force (FATF). These guidelines emphasized anti-money laundering (AML) and know-your-customer (KYC) compliance.
Under these frameworks, entities like UnionBank were able to develop PHX with full regulatory support. This combination of innovation and oversight helped build public trust in the first Filipino cryptocurrency.
SEC Oversight
The Securities and Exchange Commission (SEC) oversees token offerings and investment-related crypto projects. It ensures that cryptocurrencies marketed as securities adhere to local laws. This dual governance by BSP and SEC provides clarity for investors and institutions alike.
(Source: BSP Circular No. 1108 – Bangko Sentral ng Pilipinas)
Impact and Challenges in Philippine Crypto Adoption
Positive Impact
- Financial Inclusion: PHX connected rural banks directly with the national financial network.
- Innovation Ecosystem: Filipino developers began exploring blockchain applications in payments, remittances, and microfinance.
- Regulatory Confidence: BSP compliance boosted trust in the first Filipino cryptocurrency.
- Global Recognition: The PHX project earned international attention, positioning the Philippines as a fintech leader.
Challenges
- Limited Awareness: Many Filipinos remain unfamiliar with blockchain technology.
- Volatility Perception: Even though PHX is stable, crypto’s reputation for volatility persists.
- Infrastructure Gaps: Some rural areas still lack reliable internet.
- Complex Regulations: Compliance can be costly for startups.
Despite these hurdles, the first Filipino cryptocurrency proved that with collaboration between banks and regulators, blockchain can truly serve the public good.
The Future of Filipino Cryptocurrencies
The success of PHX, the first Filipino cryptocurrency, has opened doors for future digital currency innovations.
What’s Next:
Education & Regulation: Continued learning and updated laws will ensure sustainability.
Central Bank Digital Currency (CBDC): BSP is exploring “Project Agila”, a pilot for a potential digital peso.
Integration with E-Wallets: Future stablecoins may connect with GCash, Maya, and Coins.ph.
Cross-Border Transactions: Filipino stablecoins could simplify OFW remittances.
Private Sector Tokens: More banks may issue their own blockchain assets.
For related insights, Explore More on Philippine Fintech Innovation
🧠 Test Your Knowledge!
How much do you know about the first Filipino cryptocurrency, PHX? Take this short quiz to find out!
Results
#1. What was the main goal of UnionBank in creating PHX?
#2. What does “i2i” stand for in UnionBank’s blockchain network?
#3. What type of cryptocurrency is PHX?
For more quizzes and exams, visit the ExpPH Blog Learning Hub.
Conclusion
The creation of PHX, the first Filipino cryptocurrency, was a defining moment in the nation’s digital transformation. It proved that blockchain technology could be more than speculative—it could be practical, inclusive, and locally relevant. UnionBank’s vision of connecting “island-to-island” through the i2i blockchain has not only transformed rural banking but also inspired countless Filipino innovators.
Today, the first Filipino cryptocurrency stands as a symbol of what the Philippines can achieve in the fintech era: a locally made, globally recognized digital asset that bridges technology and trust. As BSP explores the digital peso, the legacy of PHX continues to shape the future of Filipino digital finance.
