The stable currency DAI appeared to be an interesting alternative for savers or investors in Argentina. This was stated in an article by BAE Negocios where They pointed out that the devaluation of the Argentine peso, restrictions and bans on buying dollars, excessive tax pressures and legal uncertainty have affected citizens.
It should be noted that DAI is a stable cryptocurrency (or stablecoin) that maintains one-to-one parity with the dollar. The BAE Negocios article stated, “It is legal and there are no restrictions. Therefore, a cryptocurrency is instantly accessed to store, invest, or send to different parts of the world.”
“Behind this currency (DAI) is neither a centralized authority nor a financial company that plays with its value and that can be a point of failure for the system, but the price is regulated by the market. Since Dai is backed by Ether (one of the highest capitalization cryptocurrencies), it does not depreciate and supports market fluctuations, and support can be checked from a computer at any time, “they explained.
The article also quotes Mariano Di Pietrantonio, Head of the DAI Community in Latin America, Saying:
“Capital controls are natural triggers for activity in the crypto markets, and Argentina, a country also experiencing a growing period of inflation, is becoming fertile ground for the growth of DAI transactions.”
On the other hand, taking into account an analysis by the Buenbit company, DAI has advantages over the dollar:
- Blockchain advantages
- Transmission capacity
- Generation of immediate interests
- Lower exchange rate distribution
- Automatic liquidity
- Ideal for entering the world of crypto currencies
Another executive quoted in the BAE Negocios publication was Maximiliano Hinz, Binance’s Latam Operations Manager, shared:
“We have worked hard to include DAI in our P2P offering. We understand that it is a type of digital good that is in high demand in Latin American markets. “
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