Key Takeaways
- The stablecoin will be made available to all citizens of the province and will be 100% collateralized in liquid financial assets of the provincial state.
- US dollar-pegged stablecoin will be named the “Activo Digital San Luis de Ahorro.”
A province in Argentina called San Luis is taking an active approach toward crypto adoption. The province has now approved legislation allowing the issuance of its own US dollar-pegged stablecoin called the “Activo Digital San Luis de Ahorro.”
The stablecoin will be made available to all citizens of the province and will be 100% collateralized in liquid financial assets of the provincial state. The bill however needs to be clearer on various fronts. The legislation is yet to specify which chain will be used for the transactions, and there exists an unclarity on whether the digital asset will be used as a currency or will only have a role as a debt bond.
The law, however, does mention that transactions will be transferable between users via different wallet accounts. The legislation, called “Financial Innovation for Investment and Social Economic Development,” further introduces blockchain as a weapon to potentiate the development of several fields in the province, including generating value and improving auditing processes.
The new legislation also touches upon NFT adoption. Under the new law, the province is expected to issue “San Luis Art Digital Assets” as art collections created by local artists of San Luis with the main goal of giving them a platform for digitizing their artwork.
“For the creation of these collections, NFT (Non-Fungible Token – Token No Fungible) technology will be used, making this work of digital art unique, granting ownership and authenticity to the artist or holder of the digital asset,” the bill adds.
Argentina’s measure to integrate crypto and digital asset into the economy has surged in recent months. Earlier this month, Argentina created a national blockchain committee, with the primary responsibility to “act as an interlocutor in the local blockchain ecosystem promoting the interoperability of blockchain technologies and a good government.”
Recent reports indicate Argentinians are welcoming towards digital assets and crypto in general. A report by blockchain analytics firm Chainalysis revealed that more than 30% of consumers in Argentina already use stablecoins every day, mainly for retail purchases. A morning consult survey also revealed that around one-third of Argentines said they bought/sold cryptocurrencies at least once a month.
