Key Takeaways
- Argentina province Misiones set to issue stablecon
- Province has already passed blockchain bill to parliament
- Stablecoins remain a controversial subject for financial regulators
This development was revealed in a statement on Misiones finance ministry’s website with key details. In addition, the legislative arm of Misioneshas signed into law a bill that encourages the development of blockchain technology and cryptocurrency.
Misiones also became the first region in Argentina to pass a comprehensive legal framework for blockchain technology and cryptocurrencies. As a result, the region intends to use blockchain to collate data within its public administration and will create a conducive environment for innovations.
The biggest information in the bill is the proposal to create a stablecoin that will ensure an effective payment system within the region and global partners. It is understood that the law has already been approved by the lower chamber and is awaiting approval from the Senate of the province before it can be enforced as law.
Misiones did not provide comprehensive details about the potential stablecoin, and it is unknown how it would work. However, the province will likely deploy the stablecoin on an existing blockchain platform.
Stablecoins is a controversial topic within the conventional financial world due to their potential to disrupt international finance. They are pegged to real world assets and do not possess the volatility of popular coins like bitcoin and Ethereum. This makes them an ideal payment settlement means for cross-border transactions.
Facebook wanted to deploy a stablecoin some years backed, and it was met with derision from global regulators. Currently, Tether USDT dominates the stablecoin industry and is pegged to the US dollars. Other stablecoins like Paxos Gold are pegged to the gold price, and there are numerous stablecoins in the market.
It remains to be seen if the development of a stablecoin will be a success for the Missione province, but it is a great one for the blockchain industry.
What do you think about Misiones' proposal to issue a stablecoin?
