The bill also allows local artists to create nonfungible tokens (NFT) in order to promote financial and cultural inclusion.
Argentina’s province of San Luis approved legislation allowing the issuance of its own stablecoin pegged to the US dollar. The token, known as the “Activo Digital San Luis de Ahorro,” will be available to all province residents over the age of 18 and will be 100% collateralized in the province’s liquid financial assets.
The bill gives the province the authority to issue the stablecoin up to 2% of its annual budget. It also says that assets can be transferred between parties, but it doesn’t say which chain will be used. San Luis has a population of over 430,000 people.
The stablecoin issuance is just one of the initiatives described in the bill titled “Financial Innovation for Investment and Social Economic Development,” which aims to promote development in several sectors throughout the province by utilizing blockchain technology, such as generating value and improving auditing procedures.
Along with the stablecoin, the bill allows local artists to create nonfungible tokens (NFTs) in order to promote financial and cultural inclusion. According to the bill:
“The “SAN LUIS ART DIGITAL ASSETS” will be art collections from the Province, giving local artists the opportunity to digitize their work and have it launched on the digital market through an internal web platform for purchase and sale. For the creation of these collections, NFT (Non Fungible Token – Token No Fungible) technology will be used, making this work of digital art unique, granting ownership and authenticity to the artist or holder of the digital asset.”
In Argentina, where two-digit inflation has sparked company and government initiatives into cryptocurrencies and blockchain technology, a complex economic scenario is driving crypto adoption. In Argentina, FocusEconomics panelists expect inflation to be 73.5% at the end of the year.
According to a Chainalysis report, over 30% of consumers in Argentina already use stablecoins to make everyday purchases, most likely for small retail transactions.
