A proposed bill seeking to recognize a gold-backed stablecoin as legal tender in Indigenous Peoples’ (IP) ancestral domains is being positioned as a technology-driven experiment in using blockchain to support local economies outside the traditional banking system.

The measure covers YWC, a stablecoin issued by the Global Gold Monetary Fund (GGMF), which is designed to maintain a 1:1 peg to gold. Unlike conventional cryptocurrencies, YWC is promoted as a payment and settlement instrument that relies on blockchain infrastructure while claiming price stability through physical gold backing.

If passed, the bill would allow YWC to be used as legal tender in ICC/IP-registered ancestral domains affiliated with the Confederation of Indigenous Peoples of the Cordillera and Mindanao.

Supporters say this could give IP communities a digital means to transact, store value, and receive remittances in areas where access to banks and financial services remains limited.

The technology angle centers on blockchain-based transactions, which enable peer-to-peer transfers, digital wallets, and traceable records without requiring intermediaries. In theory, this could lower transaction costs and simplify payments for local trade and cross-border remittances, particularly for communities that rely on informal or cash-based systems.

GGMF says YWC is backed by physical gold held within ancestral domains, with verification through affidavits and periodic audits. The structure, if validated by regulators, would tie the digital token’s value to a tangible asset rather than market speculation.

The proposal also outlines potential cross-border use, particularly in regions where stablecoins are already used for remittances and trade settlement.

“It would be an ideal and stable gold-backed cross-border settlement mechanism throughout Africa,” said Joseph Alain Leferno de la Motte, GGMF’s principal spokesperson and managing trustee. He cited the widespread use of dollar-pegged stablecoins such as USDT and USDC as evidence that similar systems can gain traction for payments and transfers.