Tokenized dollar gains space among Latin American investors

So-called stable currencies, or stablecoins, have been gaining ground among investors in the region. Linked to assets such as the dollar, they seek to maintain a stable value and offer a less volatile alternative than traditional cryptocurrencies, such as bitcoin.

According to the Bitso exchange report, the demand for stablecoins surpassed the demand for bitcoin for the first time in Latin America.

According to Bernardo Pascowitch, presenter of Resenha do Dinheiro, the movement reflects a growing concern among investors with the value of their local currencies in the face of economic and political challenges.

"This search for stablecoins occurs due to the search for asset protection through the tokenized dollar. They are not necessarily after appreciation, but asset preservation", says the presenter.

The investor is not purchasing a variable income product or an application aimed at generating additional returns, but rather a digital representation of the dollar, explains Thiago Godoy, financial educator.

In addition to its exchange rate protection function, the tokenized dollar has also been used for international transfers of resources.

According to Marilia Fontes, founding partner of Nord Investimentos, the strong presence of immigrants in several Latin American countries also helps explain the popularization of these digital currencies.

"Technology makes it easier to send money to other countries and, therefore, many people end up using this tool to send money abroad instantly and easily, which is very important", he analyzes.

And for those who are interested in investing but still have doubts about what to do, Pascowitch says that the purchase process is relatively simple.

"Just go to a cryptocurrency broker, make a pix to that broker or a deposit of another crypto, convert into USDC or USDT (the two largest dollar-backed stablecoins on the market) and leave the funds in your own digital wallet as a form of capital preservation or send anywhere in the world in a few seconds. It's quick and easy, whether to preserve wealth or for international remittances", he explains.

In addition to the growth of cryptocurrencies, what has been attracting the attention of regulators and the financial system is the possibility of these currencies taking on an even more relevant role in digital payments in the coming years.

"In the United States, this advance fuels regulatory debates, such as the Clarity Act, as there are those who advocate bringing stablecoins closer to bank deposits. At the same time, there is an interest in strengthening the global use of the digital dollar, which could further expand the relevance of these currencies", adds Bernardo.

Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.

The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.

Source: CNN