Is Argentina the market for stable coins? Several experts will talk to answer this question. The meeting will be broadcast online on Wednesday, May 6 at 4 p.m. (Chilean time).
As the organizers said Cristóbal Pereira, Executive Director of Blockchain Summit Latam, who is also CEO of LatamTech and Purplex Tech, will speak to Mariano di Pietrantonio from Maker DAO. with Max Carjuzaa from Money On Chain; and with Sebastián Resano from Celo.
“This conversation will definitely be very good. A long time ago, I wanted to have these three great representatives in a room where we can talk about our beloved transandine country Argentina,” said Pereira from Chile.
“I’m waiting for you on Wednesday, May 6th, to speak about the economy, stable currencies, decentralization and more,” he added later.
On March 20, Cointelegraph published an interview in Spanish with Max Carjuzaa from Money On Chain, asking why a person would need a stable coin. And he replied:
“Someone who needs a stable coin knows that he needs it. At some point, stable coins will be used worldwide, but today we are not yet at this stage. Today we are at an early stage of the introduction of stable coins, in which innovators use these coins The innovators who work in the crypto world today who already have part or all of their economy in the crypto world and sometimes have to get out of the volatility. If you convert your BTC to USD and leave your money on a stock exchange, you’re exposed to counterparty risk, or you can sell your BTC and transfer your money to a bank, but this is expensive and time-consuming (and also involves counterparty risk), so if you have Bitcoin and want to temporarily break out of volatility, it’s a stable one Coin with Bitcoin collateral ideal for this situation. Another use case is the exchange of Wa and services between bitcoiners. For business transactions, a price is usually defined in USD. If you need to complete the transaction in Bitcoin, there is a friction between the buyer and the seller, who may be watching different prices from different exchanges or at different times. This difference could be very high due to Bitcoin’s volatility, and a stablecoin will surely solve it in Bitcoin. “
In another Spanish Cointelegraph interview published in August 2019, Mariano Di Pietrantonio explained what stable coins are and how they differ from other cryptocurrencies:
Stable coins are stable coins, they may have too graphic a name given the history of volatility in the crypto world. They differ from other currencies by the relatively stable price. Most follow the value of the US dollar. There are some differences in the world of stable coins, and so they capture the value for which they are stable. “
For example, Mariano Di Pietrantonio made it clear that the two most popular mechanisms are:
Crypto guarantee: Popular cryptocurrencies like Ethereum are used here as a backup, which have a high market value, liquidity and resistance to censorship.
Another important factor for crypto-supported stable coins is that they are over-guaranteed. This means that for every dollar that has a stable coin of this type in circulation, more than $ 1 supports this. For example, DAI currently has $ 3.80 support for each DAI in circulation. This type of structure is required to keep the stable coin stable in the face of fluctuations in market value, and provides a form of immediate verification by the user as he can know the system support at all times.
Fiat money guarantee: These are covered by fiat money and it is one of the most common forms of stable coins. In simple terms, it is, in a way, a digital form of fiat money. What happens with this form of stable coin is that these coins have the same value as the currency that supports them. This means that if the backup is worth $ 1, each stablecoin cryptocurrency will have the same $ 1 value. Therefore, both currency ratios always remain 1: 1. This is the basic element of stablecoin in Fiat. In this case, however, real money is deposited in a bank account for all these types of stable coins. This infrastructure invalidates the general concept of decentralization.
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