With the sharp decline in the value of Bitcoin and other cryptocurrencies around the world, stablecoins have become increasingly popular among traders and investors in Latin America and are being adopted as an option to hedge portfolios against the high volatility in the market.
Stablecoins are cryptocurrencies whose price is controlled by active or automatic price fixing mechanisms with the aim of low deviations in relation to a national currency, a basket of currencies, or other assets.
In this context, “Buenbit” has announced that it will add a new token to its portfolio. This is “nuPEN”, the first stablecoin linked to the value of the Peruvian sol, which will allow various transactions, such as loans, and various transactions with the traditional financial world.
According to Matias Romero, Country Manager of “Buenbit” in Peru, with this launch, users will have the opportunity to own an asset replicating the Peruvian Sol on the blockchain, combining the benefits of this technology with the convenience of trading in local currency. “It is a bridge between the real economy and decentralized finance.
The focus is on providing new tools for decentralized finance and integrating new users into the crypto world. This product will bring financial freedom and provide an alternative to the traditional system.
“The first Peruvian stablecoin aims to provide access to cryptocurrencies, and users can buy cryptocurrencies with local currency or in dollars through bank transfers,” Romero affirmed.
STABLECOIN INVESTMENTS IN LATIN AMERICA ARE ON THE RISE
This new token, which is pegged to the Peruvian sol, comes at a time when Latin American currencies are being weighed down by the U.S. dollar in the traditional financial market. “The nuPEN offers you the opportunity to enter the world of decentralized finance and earn returns with the different cryptocurrencies that exist on the platform,” Romero said.
Likewise, he commented that using stablecoins has become popular, since the user can buy a stable currency linked to the U.S. dollar, known as “USDC,” which generates annual returns in the range of five to six percent. “This product is very attractive to Latin Americans who are used to holding part of their savings in U.S. dollars.”