Unveiling PUSO: The Launch of The First Decentralized Local Currency Stablecoin Tracking the Philippine Peso
September 25 2024
by Victoria Calmon
The Celo Philippines DAO is thrilled to announce the launch of PUSO, a decentralized stablecoin pegged to Philippines Peso on the Mento Platform. This marks the sixth stablecoin for mobile payments available on the Mento Platform, built on the Celo blockchain. With more than 10 million digital assets users across the country, the Philippines proudly becomes the first Asian nation with a decentralized local currency stablecoin on Mento. PUSO can be easily used for remittances, FX trading and microloans, converted on-chain in other stable currencies on Celo, and accessed across various decentralized applications and services without regional barriers.
PUSO is a programmable blockchain-based asset that will open more opportunities in Web3 for Filipino users. Builders are invited to leverage this asset and unlock different use cases for Filipinos in the country and abroad.
One of the key benefits of PUSO is its ability to provide faster, cheaper, and more efficient digital asset trading. There are more than an estimated 10 million crypto holders in the Philippines, and many are seeking ways to optimize their trading experience. PUSO aims to provide users with access to broader liquidity pools and potentially compressing fees. This approach will allow Filipino users to benefit from more competitive pricing and efficient financial services. By offering a decentralized alternative for PHP conversions, PUSO can reduce friction and costs for end-users, enabling them to tap into a wider range of trading options and potentially more favorable rates. PUSO will act as a universal bridge for PHP-holders to access global blockchain services and platforms.
In addition to cost savings, PUSO can be used across decentralized finance (DeFi) platforms for payments, microloans, and remittances. This low-fee environment makes it a powerful tool for both traders and everyday users. Users can take advantage of liquidity pools, earning rewards or lending PUSO through various platforms. With remittances to the Philippines exceeding $30 billion annually, PUSO will provide a familiar and accessible local currency alternative.
Historically, small business owners and individuals in the Philippines have faced challenges in accessing traditional bank loans. Even when loans are available, borrowing in USD can expose them to significant foreign exchange (FX) risk. If the Philippine Peso weakens against the US Dollar, repaying USD-denominated loans becomes increasingly burdensome. A decentralized stablecoin pegged to the Philippine Peso, such as PUSO, offers a promising solution to this problem. By using PUSO for lending and borrowing, small businesses and individuals can effectively hedge against currency volatility.
PUSO distinguishes itself as a fully decentralized, community-grown stablecoin, offering a transparent alternative to centralized stablecoins. Unlike centralized offerings, PUSO is powered by the Mento Platform and governed by the Celo Philippines DAO, ensuring that users maintain control over their digital assets. This approach is particularly attractive to community members who value the principles of decentralization, transparency, and privacy in their digital transactions.
“A fully-decentralized stablecoin tracking the Philippine Peso has many fascinating possibilities and really challenges the way we think about traditional stablecoins. It’s a technological achievement that was only recently made possible by the Mento Platform on the Celo blockchain, and for a long time, I’ve felt that this was the missing piece in the Philippine crypto ecosystem,” said Luis Buenaventura, Head of Crypto at GCash.
“Exchange rate fluctuations pose inherent risks to global payments, exposing transacting parties to currency volatility and potential losses. There is a need for both dollar stablecoins and local currencies to coexist, benefiting not only savers, but also borrowers who seek access to credit in local currencies. The open-source Mento Platform aims to provide accessible local stablecoins in multiple currencies, enabling users in every country to access either a USD stablecoin, or their local digital currency such as the Philippine Peso stablecoin (PUSO) via leading mobile wallets,” said Markus Franke, CEO at Mento Labs.
How PUSO Emerged as the Latest Local Currency Stable Asset on Mento
The Philippines has rapidly become one of the leading markets for cryptocurrency adoption, with more than 10 million Filipinos holding crypto assets. As crypto use expands, the need for an accessible, low-cost stablecoin tracking the Philippine Peso became apparent. The rise in cryptocurrency adoption over the past years and the demand for a local currency decentralized stablecoin led to strong community support, culminating in the community vote on the PUSO activation proposal by Celo governance in August 2024.
The Benefits of Decentralized Stablecoins
PUSO is a decentralized, over-collateralized algorithmic stablecoin on Mento that tracks the Philippine Peso. Stablecoins can reduce the risk of price volatility. Unlike fiat-backed stablecoins, algorithmic stablecoins using an open-source, smart contract-based stability mechanism maintain their value more transparently, eliminating centralized credit or counterparty risks. Like the Celo Dollar (cUSD) and Celo Euro (cEUR), and Celo Kenya Shilling (cKES), the Philippine Peso stablecoin (PUSO) is built on the Mento Platform and backed by multiple digital assets, including USDT, USDC, BTC and ETH, within the Mento Reserve.
The EVM-compatible Mento Platform enables the ability for partners to launch and operate local stable currencies in every country. Looking to the future, Mento Labs aims to support the launch of more decentralized local digital currencies across emerging markets. This focus on local currencies is part of Mento Labs’ commitment to providing users with the opportunity to use various and more localized digital currencies within the Celo ecosystem and beyond. To explore Mento’s decentralized stable assets and their benefits, visit: www.mentolabs.xyz.
Access PUSO through the Mento dApp, or through crypto wallets such as Valora, MetaMask, or others.
If you are a DEX or CEX that is interested in integrating PUSO, please contact the Mento Labs team here.
Follow Stabila Foundation on Twitter X for updates on future incentives and rewards programs.
To stay up to date on everything that is happening at Mento Labs and with the Mento Platform, be sure to follow Mento Labs on Twitter X and join the Mento community on Discord.
The Celo Philippines DAO, established in early 2024, is a community-led organization that aims to promote the circulation and adoption of Celo technology in the Philippines. For more information about the DAO, please visit at @celophdao.
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