TL;DR
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Colombia’s largest financial institution, Bancolombia, has entered the crypto enterprise by launching a crypto trade and a stablecoin, which obtained us interested by the worth of stablecoins.
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Colombia’s largest financial institution, Bancolombia, has entered the crypto enterprise by launching a crypto trade known as Wenia.
On the identical time, they’ve launched a stablecoin known as ‘COPW,’ which is pegged to the Colombian peso.
That information is cool and all, however the necessary matter it obtained us interested by is that this:
Numerous individuals (on each side of the fence!) appear to suppose that there’s solely room for both crypto or conventional finance, however no room for them to co-exist.
We’re right here to let you know that’s bullsh*t.
Take a stablecoin like COPW for instance – it actually couldn’t exist with out having a fiat forex to be pegged to.
Positive, there are different stablecoins which are pegged to the worth of gold and different commodities, however ultimately the worth of these can fluctuate enormously too, making them tough to be ‘steady’ stablecoins.
(To not point out algorithmic stablecoins á la UST 😐)
We’re undecided that crypto will ever be the dominant forex of the world – and that’s not essentially a nasty factor.
However there’s a vital place on the earth for stablecoins.
For instance, in case your nation’s fiat forex is experiencing hyperinflation proper now, however you have the chance to place it on an trade and convert it for one thing like USDC; all of a sudden your forex will solely inflate as a lot as US {Dollars} inflate – nonetheless comparatively excessive, however not catastrophic.
All of that is to say that we like to see an organization which is so deeply engrained within the conventional finance area (actually a financial institution) transfer into the crypto area with the view to onboard their customers into crypto.
Kudos to you, Bancolombia.