Use of blockchain, crypto in PHL may grow further

The adoption of blockchain technology and cryptocurrency is likely to continue to grow in the Philippines as people further explore their use in financial infrastructure.

Philippine-led blockchain startup Tetrix said in an interview with business world that ownership of digital assets may increase as people become more educated about these technologies.

“The crypto ecosystem has grown a lot in recent years and there is an increased demand for building high-performance applications such as games, NFT (non-fungible token) markets and media applications on profitable blockchains,” Tetrix CEO said. Emman Navalan. .

“However, limitations between blockchains are forcing users to choose which one to use over the other. Tetrix aims to bridge that gap. Tetrix creates a way for many different blockchain networks to communicate with each other seamlessly,” he added.

Blockchain, the technology behind cryptocurrency and NFT trading, is a distributed database that exists on multiple connected computers.

Often referred to as a distributed ledger, blockchain also enables digital ownership and peer-to-peer transactions.

Mr. Navalan said that blockchain can support any development or digital transformation by removing redundancies and making processes efficient. It can be used in accounting, financial services, logistics, and the arts as it helps keep relevant information secure.

“The potential applications of blockchain are limitless, from storing customer identities to handling cross-border payments, clearing and settling bond or equity transactions to self-executing smart contracts such as a credit derivative that pays automatically if a company goes bankrupt. or a bond that regularly pays interest to the holder,” he said.

Established in 2020, Tetrix aims to change the way blockchains are designed, used and developed for the digital space.

Using the omni chain interoperability protocol, Tetrix has been helping enterprises and developers deploy cross-chain applications without having to rely on a middleware approach, Mr. Navalan said.

The blockchain startup recently launched Pitaka, a crypto wallet built on top of Tetrix that can transact with multiple networks.

Tetrix is ​​also looking to connect to other blockchain networks and support numerous digital projects, such as the Bangko Sentral ng Pilipinas (BSP) Central Bank Digital Currency Project (CBDC).

The BSP has been working on a pilot project to test the use of wholesale CBDCs for high-value financial transactions between selected institutions. He wants to focus on the wholesale aspect of CBDCs as he expects this to have a bigger impact compared to retail use cases.

The project covers areas including regulatory and policy considerations, technology infrastructure, governance and organization requirements, legal issues, payment and settlement models, conciliation procedures, and risk management.

The BSP recently said that it is on track to pilot its CBDC project for the fourth quarter.

Mr. Navalan said that CBDCs can provide the central bank with easy access to digital solutions. It can also facilitate faster cross-border transactions, as users can directly send digital versions of fiat money.

However, he raised some concerns about the project and urged the BSP to be more specific and clarify the limitations for the use of CBDC.

“Can it be used by anyone like a normal weight? What are the certain limitations? Would it really allow them to transact across all industries? These are the things that are being questioned in Europe, especially in the UK,” Navalan said.

“We have to be clear. The government should support the idea not only of cryptocurrencies, but of Web3 in general. Because what drives cryptocurrency is actually the technology that comes with it because technology enables trust,” he added.

Web3 refers to the decentralized web and includes both decentralized applications and decentralized finance. Web3 also includes cryptocurrencies, assets or tokens.

“Without technology, cryptocurrency will only trade, send assets, and nothing else. That is something we would not like to be in in the future because that would mean less adoption, less collection and everything will be inefficient,” added Mr. Navalan. — Keisha B. Ta-asan