on the crypto
In Argentina For some time now the shadow of the economic crisis of 2001 has returned to appear, the one that pushed the country to default the next year. The massive doses of liberalism introduced by Mauricio Macri in the three years since his election as president and the decision to undermine the weight of the dollar, they have not had the hoped for effects and, on the contrary, have considerably worsened the popular conditions, giving rise to considerable street protests led by the unions, in particular after the cutting subsidies for the purchase of fuelwhich alone are worth more than 10% of public expenditure.
Precisely for this reason, the discussion on cryptocurrency, viewed by many as a possible, albeit partial solution to the problem of excessive inflation. In particular, the focus was on cryptoeconomics under this guise Technology Review, the magazine published by the Massachusetts institute of technology (MIT) in Boston.
Cryptocurrencies instead of dollars?
In order to protect themselves from inflation, Argentines continue to collect dollars, which are then kept at home. An unsafe and poorly convenient way of saving money that could be replaced by investing in cryptoeconomics.
To favor this paradigm shift could also be the favor shown by the Buenos Aires government towards virtual currencies, testified by the agreement with Binance Labs, a company linked to the famous cryptocurrency exchange. Thanks to it, in fact, the capital has been selected as regional hub for Binance Labs' incubation program for Latin Americaa, which entered its second year of life since March of this year.
The role of Ripio
Another cryptocurrency exchange, Gravel, which already boasts over 300 thousand users between Argentina, Brazil and Mexico, has meanwhile activated itself within the state borders, offering Argentineans the opportunity to exchange cryptocurrency and a software portfolio in which to store the digital resources obtained through this route. In addition, as he remembers, Technology Review, also proceeded to launch a service that uses so-called smart contracts, i.e. blockchain-based IT programs which offer the possibility of automating complicated financial transactions, finally facilitating peer-to-peer lending, i.e. that social lending that more and more space is being created to the detriment of traditional credit. Based on the Ethereum blockchain, Ripio basically allows Argentines to obtain loans in local currency without being obliged to pay ever higher fees to banks.
Can a stablecoin be the best solution?
As we have seen, therefore, cryptoeconomics could represent a possible and partial solution to the Argentine economic crisis. Provided, however, of don't bet on a volatile asset like Bitcoin, but on options less subjected to the shocks that characterize BTC.
Again Ripio is able to come to the aid of the South American country. The exchange, in fact, in November last year added to its basket of digital products Dai, a stablecoin whose complex mechanisms, based on the smart contracts of the Ethereum blockchain, allow it to remain anchored to the dollar. So a solution ideal to meet the desire of stability of the Argentines.