A Future Without Financial Pens

A Future Without Financial Pens

20% cheaper than Cash with Liqui. 15% lower than blue-collar. 5% cheaper than the official dollar in the City and even cheaper than the Banco Nacion dollar.

In this video, I show you step by step so that you can quickly and easily access the best market price and thereby defend the purchasing power of your savings.

That word that begins with “c” and that practically cannot be named in Argentina without being accused of destabilizing, whatever the government of the day.

That word that describes an appropriation by the State and the banks in a compulsive way of the fixed terms, the current accounts and the savings banks of the people. That word that refers to the saddest chapters of the recent economic history of our country in a short time will be as anachronistic as talking about the fax machine. Everything, thanks to the new technologies.

In today’s column, we are going to analyze stablecoins together, a kind of stable cryptocurrencies that aim to change everything in the world of money. To do this, we will review notions about the blockchain that will allow us to enter this wonderful new financial technological world. Thus we can argue in favor of the sentence of this note: in the very near future, there will be no more bank runs or financial pens. People will guard their money on their own without having to resort to banks or financial institutions.

The blockchain and the stablecoins

The blockchain is a technology that was born 10 years ago with Bitcoin as a standard, but it was not limited to cryptocurrency and began to be applied in other areas and in ventures that comprise universes other than the financial one.

Among its most significant particularities, we can mention the following: it is a decentralized system (it does not depend on a State or a multilateral organism), it is totally transparent, it cannot be hacked, it is immutable (once the operations are loaded they cannot be modified ) and offers a significantly lower operating cost and transaction speed than traditional systems.

We are many who believe that this new technology is absolutely disruptive, at the level of the Internet in the ’90s. Sooner rather than later, it will gain approval from the general public when the new developments make the mentioned advantages tangible and many others that we still do not know and will appear.

Now, what are stable coins and how can they end up with financial pens?

It is a type of crypto active that, unlike Bitcoin, Ethereum and others, is backed by money, commodities and other assets that reduce price volatility.

How do they work? In the case of a stablecoin of dollars, to be able to issue it there must be a backup dollar behind the issuance. In this way, that stable coin unit becomes exchangeable for one dollar at any time, so that its price would always approach that of the dollar.

Someone with a little memory could remember the period of Convertibility that we went through in Argentina in the ’90s and that ended in the crisis of 2001, but here we are talking about something else: stablecoin offers great advantages, such as using a wallet virtual (wallet) that, with the necessary collections, becomes more secure than a bank.

The virtual wallet has no maintenance or custody costs. It also has no risk of theft or confiscation (no one who does not know the private key will be able to access the wallet), provides 24 × 7 access to possession (24 hours a day, 7 days a week) and allows the transfer of crypto to anywhere in the world in minutes and at a very small cost.

We insist: the blockchain comes to eliminate any intermediation that does not add value or that can be replaced and automated by new technologies.

In the case we are studying, the expensive and bureaucratic intermediation that the banks carry out is the one in danger. Both the custody and transfer services can be replaced thanks to the blockchain: costs decrease, access to the account improves, transactions become more transparent, operations are guaranteed and the risks of Corralitos, stocks and other gadgets disappear. Harmful financials to which the Argentineans, to the blows, we have become accustomed.

The current stablecoins offer

Among those that operate backed by dollars, there are 8 the best-known and most traded stablecoins: Theater (the main one), TrueUSD, USD Coin, Paxos, Gemini, Dai, BitUSD, and sUSD. Among them, they have a market value of almost 5000 million dollars (almost 10% of the reserves of the Central Bank of the Argentine Republic), although in their intraday transactions much more money is operated (Theater moves an average of 16,000 million dollars per day).

Beyond the search for stability in this crypto, a good measure for a cautious investor is to diversify their tenure among several stablecoins to minimize the impact of an unexpected event.

By way of conclusion: the trichotomy of money

Winds of change blow in the financial market and the beneficiaries could be, in the end, the users, that is, all of us. The new times lead us to a trichotomy of money: the money of the States, the money of the people and the money of the companies.

The money of the States is the fiduciary money whose defects we all know: inflation, indebtedness and, above all, no support for every ticket issued.

People’s money corresponds to cryptocurrencies such as Bitcoin that can be traded, guarded and transferred without any state or corporate intervention.It is P2P money (peer to peer, the exchange between equal users).

The money of the companies is in full gestation after the announcement of the creation of Libra by Facebook. Over the weeks, we have more tools to understand it better: the Facebook Pound will be like a stable coin, although instead of having only dollars as collateral, it will support its backs in a basket of coins that includes euros, yen, pounds sterling and Swiss francs. In principle, it will not have yuan.

New technologies will make it possible: there will be a future without financial pens even in Argentina. This title can be captivating, but the truth is that there is much more: the blockchain proposes not only the elimination of bank risk but also the usury commissions and the danger of losing the purchasing power of our savings due to devaluations of the peso.

Becoming an early adopter (first client) is knowing how to take advantage of this trend. The global financial system is changing. My recommendation is that you do not stay out.

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