Argentinian city passes bill establishing stablecoin pegged to dollar

Policymakers in San Luis have passed a new law called Financial Innovation for Investment, and socioeconomic development is set to enable stablecoin technology. The goal is to introduce a new coin, ‘CityCoin’, to which all residents of the more than 18 provinces will have access. The CityCoin token, known as “Activo Digital San Luis de Ahoro”, is 100% secured by the province’s liquid financial assets.

This is seen as a significant step towards the sector’s journey towards digitisation. As more countries and states delve deeper into the world of blockchain, new Development Financial innovation is expected to offer additional benefits on social, economic, cultural and financial fronts.

The measure calls for the creation of a stable currency whose value would be secured by liquid assets held by San Luis. When launched, it will be accessible to all the citizens of the state. The present law provides only a framework for making stablecoin, Therefore its particular mode of operation is thus uncertain.

The law also gives state governments broad powers over blockchain technology. This includes blockchain training programs and the development of platforms using the technology.

In addition to hoping that the technology will reduce paperwork and increase transparency, the City of San Luis believes it will speed up administrative processes. By law, a person must be at least 18 years of age to purchase crypto assets within the state.

Crypto adoption is on the rise

The use of blockchain technology to advance society has only recently reached San Luis. CityCoin features a private project designed to raise funds for neighborhood groups.

With the help of this initiative, the affiliated local authorities will be able to offer their coins on the stack. Miami and New York City were the first to do so, and presented their coins under the names miamicoin and NYCCoin.

Under the agreement local governments are entitled to incentives in the form of CityCoin, and they can stake property to gain access to additional bitcoin benefits.

Understanding pegged cryptocurrencies

A pegged cryptocurrency is one whose value is tied to a currency, financial product or tradable commodity issued by a specific bank. A pegged cryptocurrency is also known as a fiat-pegged cryptocurrency since bank-issued money, such as the US dollar (USD), the British pound (GBP) and the euro (EUR), is used.

Pegged cryptocurrency is a secure digital trade that uses encryption, whether paired with fiat money or a commodity. However, like stablecoins in most cases, these digital assets can always be acquired. de-figured, The exchange rate between two currencies determines the connection or peg. The value of a cryptocurrency swings in the same way and to the same extent as it is tied to a fiat currency once this exchange rate is set, which is usually one-to-one.

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