A few days ago, Settle Network, a company that accepts crypto payments worldwide, announced that it has launched two new stablecoins based on Stellar.
The two stablecoins are priced at the local currencies of Brazil and Argentina respectively.
During the Meridian 2020 event, sponsored by the Stellar Development Foundation (SDF), we saw a lot of experts and key players in the blockchain industry take turns talking about Stellar and beyond, and it was during this event that the two stablecoins were presented.
The stablecoins based on Stellar
In fact, we are talking about a partnership between Settle Network and Stellar to launch a stablecoin in Argentina, which will be collateralized with the Argentine weight and will be called ARST, while the stablecoin that will be launched on the Brazilian market will be called BRLT and will be linked to the value of the Brazilian real.
Both of them will be weighed 1 to 1 with the related fiat currencies. To obtain them you will have to go through a KYC (Know Your Customer) procedure.
The two stablecoins can be used on some wallets like Vibrant’s and will be listed in the different exchanges.
This is a very important step, as Settle Network CEO Pablo Orlando explained:
„Latin America has highlighted one of the greatest needs and use cases for the adoption of blockchain and cryptocurrency. This is a key moment for Latin American users. The new Settle Network and stablecoins from Stellar, ARST and BRLT allow users to virtually send Argentinean Pesos (ARS) and convert them into Brazilian Reais (BRL) in seconds, opening a new world of possibilities for international remittances and cross-border payments“.
Let’s not forget that Brazil and Argentina are countries where the use of cryptos has become a real remedy for cases of hyperinflation, as well as in Venezuela with bolivar.
Stablecoins of this type resemble what the various CBDCs would like to do, i.e. transform the fiats in a digitized but centralized way and with a private blockchain system, while these, except for the KYC part, are fully functional on the Stellar blockchain.