- Settle Network and Stellar have created two stablecoins for the Latin American market.
- The ARST is pegged to the Argentine peso, while the BRLT is pegged to the Brazilian real.
- The stable coins were supposed to facilitate transfers between the two economies.
In a world where banks can make international transactions very slow, if not downright difficult, blockchain technologies can be a safe, fast, and efficient alternative to sending money. However, the volatility associated with cryptocurrencies makes them a little scary for most of the world’s population.
With this in mind, Settle Network and Stellar are issuing two stablecoins in Latin America. The ARST is pegged to the Argentine peso, while the BRLT is pegged to the Brazilian real.
Settle Network is the largest digital asset settlement network in Latin America for exchanges and cross-border payments, while Stellar is a blockchain created by Ripple co-founder Jed McCaleb to provide an infrastructure to connect financial institutions to via cryptocurrency payments.
The announcement for the stable coins was made on November 19th at Stellar meridian Conference.
On the one hand, trade. Users could have an easier way to move their money between exchanges by having their money executed on a blockchain. This saves the complexities of conducting fiat-to-crypto transactions when users want to try their hand at the markets.
However, wire transfers seem to be the primary focus of the Settle Network.
“With the new Settle Network and Stellar Stablecoins ARST and BRLT, users can virtually send Argentine Pesos (ARS) and convert them to Brazilian Reais (BRL) in seconds. This opens up a new world of possibilities for international transfers and cross-border payments.” Pablo Orlando said in a statement with Decrypt.
Although the Argentine and Brazilian economies are badly hit by the coronavirus pandemic, the move by Settle Network is of strategic importance in the medium term – Brazil and Argentina are the two largest economies in South America.
However, large bureaucracies and social inequalities in the region have resulted in a significant percentage of the population having no or no bank account. Research by the Brazilian FinTech company Airfox revealed that approximately 44% of the total population of Brazil do not have a bank account. CashEssentials It is estimated that 52% of Argentines are without a bank account.
If this partnership helps people send money with just one click, a huge market could open its doors to crypto transfers.