Brazil needs real-backed stablecoin, Crown CEO tells CNN
Crown co-founder and CEO John Delaney says that the increasingly popular agent payments - buy and sell orders by artificial intelligence agents - cannot handle all the variables involved in the use of fiat currency and need to operate with cryptocurrencies.
During an interview with Capital Insights, a program made in partnership between Broadcast and CNN Money, he argues that Brazil should have at least one of these assets - more specifically a stablecoin, backed by the real.
"Brazil is a country with little dollarization and the real attracts the interest of foreigners", he says, relating this, in large part, to high interest rates.
The difference between a stablecoin and other types of cryptocurrencies is, as the name suggests, the search for greater stability in prices. To this end, most stablecoins are created backed by some other safe asset, generally the fiat currency of a country.
The two largest in the world are currently dollar-backed - USDT and USDC - and are already used by several companies, including Visa, which settles part of its operations in stablecoins.
Creator of BRLV, a stablecoin backed by the real and guaranteed by Brazilian Treasury bonds, mainly short-term LFTs, Crown is an infrastructure fintech focused on the cryptoassets and decentralized finance (DeFi) market. It is currently in the licensing process with the Central Bank of Brazil as a Virtual Asset Service Provider (PSAV), which meets a requirement of Brazilian regulation for the sector.
Its focus is to work with legal entities that have some type of activity or business relationship abroad. For these customers, the use of a stablecoin allows instantaneous operations, impossible in the traditional payment system. Crown is also an exchange operator authorized to operate by the Central Bank.
As the main quality of stablecoins is 24×7 instant settlement, coupled with security, Delaney admits that internally, Pix steals the attractiveness of stablecoins. But I don't see Pix operating internationally.
"It's like an intranet and the internet. Pix is an intranet, between banks and cannot connect Brazil with the rest of the world. A stablecoin operates on the internet, globally", he compares.
In the assessment of Crown's CEO, the Central Bank's regulation of cryptoactives and institutions operating in the segment - which is in the implementation and improvement phase - will remove some players from the system. Furthermore, it will allow the monetary authority to have greater visibility into transactions with this type of asset.
Source: CNN