Connect with us

Blockchain

The province of Argentina will issue a stablecoin pegged to the US dollar

Avatar

Published

on

San Luis Province in Argentina agreed Legislation allowing the issuance of its stablecoin pegged to the US dollar. The token, called “Activo Digital San Luis de Ahorro”, will be available to all citizens of the province over the age of 18 and 100% secured in the liquid financial assets of the province.

The bill allows the province to issue stablecoins at up to 2% of its annual budget. It also states that assets can be transferred between parties, but does not specify which chain will be used for transactions. San Luis County is home to more than 430,000 people.

The issuance of stablecoins is just one of the initiatives outlined in the bill called “Financial Innovation for Investment and Socio-Economic Development,” which aims to promote development in several sectors in the province through blockchain technology, including value creation and improved auditing procedures.

Advertisement

Related: Argentina fan icon down 31% after losing the World Cup to Saudi Arabia

Along with a stablecoin, the bill allows local artists to issue non-fungible tokens (NFTs) with the aim of promoting financial and cultural inclusion. The text of the bill states:

The “SAN LUIS ART DIGITAL ASSET” will be art collections from the province, giving local artists the opportunity to digitize their work and release it on the digital market through an internal web platform for buying and selling. To create these collections, NFT technology (Non-fungible code – non-fungible code) will be used, which makes this work of digital art unique, gives ownership and authenticity to the artist or owner of the digital asset. “

A complex economic scenario is driving cryptocurrency adoption in Argentina, where double-digit inflation has sparked corporate and government initiatives in cryptocurrency and blockchain technology. As of the end of the year, FocusEconomics panelists expect inflation to be at 73.5% in Argentina.

Chainalysis report Revealed that more than 30% of consumers in Argentina Already use stablecoins to make daily purchases, most likely for small retail transactions, under