The Argentine cryptocurrency company Ripio announced that it has launched what is considered the first Latin American stablecoin, called “Cryptodollar”. What are the implications?
The emerging stablecoin business is accelerating in Latin America as the adoption of these crypto assets, whose main characteristic is fiat currency parity, gains ground in the region, amid the regulatory gaps that still weigh on most markets.
The Argentine cryptocurrency company Ripio announced that it has launched what is considered the first Latin American stablecoin, known as “Cryptodollar”.
As reported by Bloomberg, this stablecoin will trade under the UXD and will maintain a 1:1 parity with the dollar. This announcement marks a milestone for the Latin American crypto business, since with this development, the race in Latin America for the adoption of both locally issued stablecoins as well as their own Blockchain infrastructure is formally launched.
Experts Discuss Ripio
Ripio, with more than 8 million users and some 350 employees in Latin America and Spain, will be supported on the native LaChain network for the operation of UXD. The company hopes to open local offices in Uruguay and Colombia within the framework of this competition.
It is estimated that the market capitalization of the main stablecoins currently reaches $125.14 billion globally, with Tether(USDT), USD Coin, Dai, among others, with the highest contribution.
The director of the TicTank of the Universidad del Rosario, Erick Rincón Cárdenas, comments that the movements in the business of stablecoins may set off the alarm bells of the Latin American central banks, “With the substitution of activities of the monitored financial system and they will seek to restrict the course of some operations, such as foreign exchange.”
“This will also measure the pulse of the supervisory entities so that they begin to regulate, either for the better or for the worse of the industry.
These scenarios could occur to the extent that the stablecoin paper is published and the capacity of the currency is measured to show if there are risks of threatening financial stability, an insistent theme of central banks, whose position is reactive and resistant in terms of cryptoactive operations,” said the analyst in conversation with Bloomberg en Línea.
Camilo Rodríguez, an investment advisor in crypto assets at CR Academia, indicates that one of the differentiations of UXD is “the number of payment gateways and ramps, both cash and bank transfers, to the Ripio company.”
Stable Currencies in Latin America: Ripio and its UXD
Rodríguez particularly highlights that Latin America is going to have its own chain of blocks for emerging markets, using the UXD as a transactional medium.
“It is not a decentralized Blockchain; However, the commercial use that this can have is quite large and clearly gives a start and a foot towards a Latin American market that, if unified in a single ecosystem, can unseat international Blockchains and give Latin America a bit of prominence,” said the specialist.
Regarding LaChain, he highlights that it is based on the technology under which Polygon is supported, but in this case under its own infrastructure, with its own nodes and transaction validators.
Mauricio Tovar Gutiérrez, co-director of the InTIColombia research group at the National University of Colombia and co-founder of Tropykus, told this medium that differentiation will be key for UXD in an environment in which other competitors already have “very strong network economies and people He already recognizes them.”
By Audy Castaneda
