Breaking Bitcoin News

1 BTC = 1 BTC

Latest Article ↗️

Breaking Bitcoin News

1 BTC = 1 BTC

Latest Article ↗️

Stablecoin Offers Way Out for Argentinians as Peso Struggles

written by

Support free journalists: > send a tip

After another economic crisis in Argentina, characterized by the peso’s falling to a record low against the US dollar, some financial analysts and commentators in the region see cryptocurrency as a potential solution.

After a history of inflation and debt defaults by the government, Argentina’s population see banks as a risk with some savers even keeping pesos in cash at home rather than deposit funds with a bank. Cryptocurrency has become more noticeable these days, particularly in the country’s capital Buenos Aires, where blockchain projects are thriving, unhindered by a government which is currently tolerant of the new technology.

It has been suggested that a cryptocurrency stablecoin may be a viable alternative to a struggling peso at some point if the current downturn in the economy kicks in with more vehemence. It could be that the mechanism already exists for creating a stablecoin with companies such as Ripio already adding its own to Dai coin to its exchange and wallet.

Developed by a foundation called MakerDAO, Dai is pegged to the dollar by using smart contracts on the Ethereum blockchain and is also currently being offered by another Argentinian exchange Beinbit. A few other exchanges in the region also offer Dai, the most notable of which is Buenbit. Ripio now has 300,000 users in Argentina, Brazil, and Mexico.

Nadia Alvarez MakerDAO’s business development associate for Latin America suggests that a change of perception by Argentinians needs to take place before a stablecoin could become an effective alternative to the national currency.

“One big problem that we have now is that all the crypto solutions have been for the crypto-nerds, for the techie people,” she said, adding that a stablecoin could offer the advantage of being “totally understandable” to users, rather than a cryptocurrency which fluctuates in value, as does country’s current fiat, the struggling peso.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

Help spread this article :)

BitcoinNews.com is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of BitcoinNews.com

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by BitcoinNews.com to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of BitcoinNews.com 

   Advertisement

Read More Bitcoin News

   Advertisement