With new restrictions on buying US dollars in Argentina, cryptocurrencies have appeared as an option for users and businesses. In this context, DAI is a stable coin that has also sparked interest. Cointelegraph in Spanish spoke in Argentina to MakerDAO’s Marketing Director for Latin America, Mariano Di Pietrantonio, who gave his opinion on the subject.
“The issue of Argentina and the dollar is news every week. And we see that the crypto problem has also hit the radar of the Argentine government, central bank and regulators, “said Di Pietrantonio. “But nothing is very clear yet,” he added.
However, He highlighted the benefits of stablecoins for users. “The advantages of a Stabecoin like DAI are that you can protect it as paper money, but with the certainty that it won’t hang around the house or under the mattress, as is commonly said. It is also an advantage for sending money between family members. This is very easy with cryptocurrencies. It’s practically instantaneous, all over the world. You don’t have to wait and you don’t have to trust a third party. “
“Later, what we experience every day with the devaluation of the currency accelerated by the pandemic and quarantine we are immersed in means that there is no real value of the dollar in Argentine pesos,” he said.
For MakerDAOs Latin America Marketing Leader, People will try to find an option and they think DAI is excellent in this case.
He also said that The devaluation scenarios are not exclusive to Argentina: “We see that there is also a devaluation in other Latin American countries. Not at the speed of Argentina, but it happens. We can see it in Brazil, Colombia, Chile or Mexico, which are also important markets worldwide. We will see how stable coins are an excellent form of protection in this scenario. “
Regarding the total capitalization of stable coins worldwide, Di Pietrantonio pointed out that He has grown a lot since the beginning of this year and thought it would continue to grow.
“There is also something fundamental. In my opinion, the country that cryptos win is a country that will not be abandoned later. Those who already know how to buy, send and save with stablecoin already know how to have their own receipt, and this is marked by fire. “
What are stable coins?
In an interview published last year, Mariano Di Pietrantonio made it clear what stable coins are and what differences they have to 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, “he explained.
Some of the most popular mechanisms he exemplified 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 in circulation with a stable coin of this type, more than $ 1 supports this. For example, DAI currently supports every DAI in circulation with $ 3.80. 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 of these types of stable coins. This infrastructure invalidates the general concept of decentralization.
When asked about the potential of stable coins for Latin America, he replied:
“I see a lot of potential, not just for Argentina, but for all those countries in which citizens have to endure countless economic fluctuations that affect opportunities for progress and more basic goals such as nutrition, education or health. Cryptocurrencies like DAI offer that to citizens Possibility of a way out of the harmful national monetary policy that only jeopardizes people’s financial performance Imagine someone gives 100% of their salary to DAI every time they get it in fiat currency and sells it it is how he has to spend it. In this way people can stand at a stable value and are not afraid of an unexpected devaluation. That is the option that we are giving people today. “
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