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South American country Argentina is witnessing a tremendous inflation problem. The problem has gone so big that it is in dire need of a solution. Given the times are sensitive for the economy, the country seems to take unconventional ways. Recent instance came out as an example of the same where a province is moving towards USD backed stablecoin.
San Luis province in Argentina is reported to approve a legislation intended to allow issuance of a dollar pegged stablecoin of its own. The token goes by the name, ‘Activo Digital San Luis de Ahorro’ and is said to be 100% collateralized in the province’s available liquid financial assets. It will be available for a population of more than 430K people of age 18 and more within the region.
According to the ‘Financial Innovation for Investment and Social Economic Development’ bill, the stablecoin issuance would take up to 2% of the San Luis province’s annual budget. The assets set to transfer between parties, was not specified which blockchain is going to use as underlying tech for transactions.
Issuing a stablecoin, however, was not the only initiative that the bill projected towards. It also intends to look up towards several specific sectors for the development within the region while leveraging the blockchain tech. These sectors would be facilitating generating value and improving the auditing procedures.
Apart from stablecoin, legislation also seeks promotion of non-fungible tokens. It will allow the local artists to create and issue their own non-fungible tokens (NFTs). This move is expected to promote more financial cultural inclusion.
The bill noted the ‘San Luis Art Digital Assets’ will be San Luis provinces’ art collection that will be giving an opportunity to the local artists to digitize their work. This way, they will also make it launch over the digital market over the internet availing it for sale and purchase. The technology will be facilitating creation of the digital art pieces and making their art work digital and unique, grant the ownership and ensure authenticity benefitting both the artists and holders of the digital collectible.
Argentina is facing severe economic hits where the inflation is expectedly roaming in double-digits. According to an economic news and forecast platform, inflation in the country is expected to reach up to 73.5% by the end of this year. Such a complex situation makes the country look towards initiatives leveraging crypto and blockchain tech. Citizens were reported to use stablecoin there, considering it as a safer option during such a burning inflation rate.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
