The percentage of unbanked Latin Americans is significantly high.
The Chief Operating Officer (COO) of NUM Finance, Santiago Migone, spoke with Cointelegraph en Español about various topics such as Blockchain, Bitcoin and current markets.
Migone, who leads the same people who created nuARS, a cryptocurrency tied to the value of the Argentine peso, said that Blockchain technology would help financial inclusion by presenting the opportunity to integrate those who are outside the system by offering them the same or more opportunities than the traditional system.
“The percentage of unbanked Argentines is significantly high, the same thing happens in Latin America. In addition, many people are left out of the financial system because they do not meet requirements (such as not having a formal address), not have financial education, or access to services,” Migone said.
“Blockchain technology can open doors to people who were never able to save, ask for loans or make transactions before. New use cases are constantly created, existing processes are facilitated and an ecosystem is formed in which new opportunities always emerge,” he explained.
Migone also explained that those who previously could not have access to loans or financing can now do so from their cell phone, without intermediaries, and with minimum requirements. “This is what we mean by financial inclusion: favoring the entry to safe, fast, fair, quality, and low-cost financial services or products for all segments of the population,” he added.
In this sense, Migone clarifies that decentralization and, consequently, decentralized finance, are key in this aspect, given that by not having institutions involved, there are no more entry barriers, high-interest rates, censorship, or discrimination against investors.
“Although one point against it is the difficulty in incorporating this technology, there are attentive communities willing to always help. But above all, it is essential to educate users so that they adopt the technology and make prudent choices within the network”, he highlighted.
Bitcoin and Ether as a Store of Value for Argentines
During the conversation, Migone talked about the Argentine context where the devaluation of the peso has been increasing and many people cannot buy dollars. In his view, cryptocurrencies such as Bitcoin and ether have started to become reserves of value or escape routes from inflation.
“Although both are solid, pioneering projects with a large market capitalization, the high volatility and the risk that one assumes when depositing their savings in this type of asset should not be overlooked,” he said.
He also mentioned that both currencies are acquired at an exchange rate very similar to the dollar: cash with settlement (CCL), and that also one of the most famous options, and perhaps more practical in recent times to access the crypto dollar was through the different stablecoins are offered in the market (DAI, USDT, USDC, BUSD, among others).
Market News
Finally, Migone spoke about Bitcoin and pointed out that the variation in the prices of an asset reflects the flow of information and market expectations. “Lately, prices have been greatly affected by the current macroeconomic context: the Fed’s rate hike, armed conflicts (Russia and Ukraine), among others,” he said.
“This uncertainty perceived by the market exponentially affects the price of these instruments, given their high volatility. However, with the news of the Russian troop withdrawals from Ukraine, most of the world’s assets are reacting positively,” concluded Migone.
By Audy Castaneda
