Binance CEO for Latin America, Maximiliano Hinz, said that stablecoins have great growth in the region. Latinos have a preference for stablecoins because they are “more familiar” with them, according to the exchange.
Binance CEO for Latin America, Maximiliano Hinz, revealed that the current economic landscape in the high-inflation region has boosted the demand for stablecoins, as they are used as an alternative against currency devaluation in Latin America.
Maximiliano Hinz expressed the following to Bloomberg Line:
“Much of the volume of cryptocurrencies traded in Latin America translates into stablecoins. As users learn about Binance and alternatives, we see them migrating to cryptocurrencies whose value is more volatile, such as Bitcoin, Ethereum, and Binance Coin.”
Hinz Further Explains
At the beginning of July, Maximiliano Hinz calculated that cryptocurrencies have a global penetration of up to 4%, which, although it has grown, is lower than the global use of credit cards, which is between 12 and 15%, so that there is “a lot to do”.
“We see how there are a lot of crypto projects that are emerging within Latam, both technological and artistic, and the right decisions are being made so that the region can establish itself as an international hub, without a doubt.”
BeInCrypto previously stated that one of the countries that most recently adopted stablecoins was Argentina, where savers in the face of changes in the Treasury resorted to stablecoins. They bought between two and three times more stablecoins than on a typical weekend. Following Guzmán’s resignation, the peso depreciated around 15% against stablecoins DAI and Tether on several major local exchange platforms.
For the CEO, Latinos have a preference for stablecoins because they are “more familiar” to them, as they have a 1:1 parity with fiat money, such as the Mexican peso (Tether), the dollar, or the euro.
At the end of 2021, Hinz declared in a television interview that El Salvador set “a precedent” with the adoption of Bitcoin as legal tender and acknowledged that the country is working “very hard” on financial education.
Boom for Cryptocurrencies
On that occasion, the local director of Binance claimed that there was a boom in the world for cryptocurrencies, including Latin America, and stated that when the company arrived in El Salvador they realized that many businesses accepted Bitcoin, which seemed to him to be a “very positive option.”
“There are many people in Latin America who are investing in cryptocurrencies and learning about their use. El Salvador has guaranteed employment generation, with the help of Bitcoin mining. The country will be the ecosystem in which companies will sell their shares in a global market, since, in a few years, Bitcoin will be the currency of the world.”
Despite the enthusiasm for Bitcoin, there are those like Professor Paul De Grauwe, who think differently. According to him, it indicates the existence of an aspect regarding the future of Bitcoin, which makes it a dangerous currency, since it confronts a supposed idealized world – where Bitcoin would be central – with the real world.
Bitcoin would not be backed by a lender of last resort, the central banks, and when crises came, and they always do, everyone would go for liquidity, but it would be non-existent. If there are no central banks to provide liquidity, you are headed for deflation and insolvency. A Bitcoin economy is not flexible enough.
By Audy Castaneda
