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Cryptocurrencies are “the ideal ecosystem” for Argentina, says Num Finance executive
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According to Chainalysis’s “Geography of Cryptocurrency Report”, some Latin American countries are among the top 20 in terms of cryptocurrency adoption. The report highlights that the most popular use cases in the region are international remittances and inflation protection, the latter found especially in Argentina, where inflation exceeded triple digits last year.
Agustin Liserra, CEO of Argentine cryptocurrency company Num Finance, explained that Latin Americans need a tool to carry out worldwide transactions without permission, while mitigating inflation and monetary devaluation.
“These are things that people really suffer here in Argentina and in Latin America in general. I would also say that here in Argentina, with the Milei government, inflation is decreasing rapidly. So we’re below single-digit monthly inflation, and it’s important to be clear about this because it doesn’t seem like a real success, but for Argentina, where last year inflation was above 100%, to have annualized the “Inflation in the month will perhaps be 50% or 60%, it’s like an improvement,” Liserra said.
Despite signs of recovery seen through declining inflation numbers, Liserra points out that consumption and economic activity as a whole are declining in Argentina. Furthermore, some products are not available in the country and cryptocurrencies become the ideal ecosystem for “this type of need”.
Num Finance offers a tokenized version of traditional financial products, such as commodities, stocks and currency-backed stablecoins. Furthermore, they offer income products based on these stablecoins. Liserra explained that the focus on these products is linked to their liquidity and the regulation of their markets, ensuring customer protection.
“And then when you talk about mitigating inflation with high-yield products, for example, what we’re doing with Num seems to be really useful for people to have a stablecoin of national currencies, like the Argentine peso, with a really high yield. high compared to inflation and a tool that helps mitigate it […] We believe that in the cryptocurrency space we still have a lot of room for growth in the real financial world, so we are focused on that.”
Regarding regulation, Liserra stressed that no significant developments occurred in Argentina after Milei became head of the executive branch. However, a regulatory bill could come to light next year.
“There is no regulation yet regarding the obligation to inform the regulator about the transactions that customers are making with certain exchanges or things like that, but only a register to let the regulator know who the actors are in the ecosystem. And then the idea is to start working with the government and come up with regulation for digital asset service providers. I don’t think this regulation will see the light of day this year, maybe next.”
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