Saturday, October 17, 2020
The increasing restrictions on the purchase of dollars, which now also involves foreign trade and the acquisition of dollars in the market from companies, once again generated controversy and uncertainty. In this context, many Argentines are turning to cryptocurrencies again as a viable alternative for both savings and escape from certain regulations that only affect traditional fiat money for the moment.
In this way, the national government seeks to stop the diversion of foreign currency after demand increased 9 times so far this year. Now, consumption abroad and services abroad (such as Spotify or Netflix) will cut the possibility of buying dollars. Also the purchase of tourist packages, since operators, both online and offline, must access the exchange market. The measure is effective from September 16 and whoever buys saving dollars will pay 30% of the PAIS Tax and, in addition, will suffer the retention of 35% Profits that will be returned at the close of the fiscal year. Officials clarified that the two percentages are applied to the retail price. In other words, they do not accumulate.
In the sector they estimate that there are more than 900,000 “digital dollar” savers, a denomination that groups together all assets based on cryptography technology; from traditional cryptocurrencies to stablecoins. And the companies that are dedicated to the field are almost a quarter of the 200 registered in the Argentine Chamber of Fintech.
Stablecoins or stablecoins have gained more prominence in the cryptocurrency space, driven particularly by the plummeting prices of crypto assets after the 2017 “corralito”. This each caused a fundamental shift in the mindset of investors, since who started looking for cryptocurrencies with greater stability. In its simplest sense, a stablecoin is a form of digital currency that provides price stability by backing up a reserve asset.
Both stablecoins and traditional cryptocurrencies regained ground and even started financial services with gains in the best fixed term style.
Binance, one of the largest cryptocurrency trading and purchase companies in the world, with more than 15 million users and a daily volume of transactions of more than 3,000,000,000 dollars, recently arrived in Argentina. At the hands of the Chinese-Canadian businessman Changpeng Zhao, it became one of the reference exchanges. Currently, Binance operates in more than 180 countries, with a presence in the region, in Brazil and Venezuela. In addition, it is starting its operations in Mexico and Colombia. It is a 100% decentralized organization, with more than 1,200 employees in more than 40 countries. The platform operates with more than 600 pairs of cryptocurrencies and tokens, and multiple options for savings and investment, similar to those of the traditional financial market, but with higher returns than those of regulated markets.
For clients looking for low-risk investments, it offers different types of fixed terms in crypto dollars or cryptocurrencies, with returns of up to 7% per year. It also offers loans against bitcoin or its own currencies with an 11% annual interest in dollars; leveraged futures, options and tokens; trading and margin trading; among other proposals. Regarding this, the company confirms that “all the services that are in Binance.com can be used from Argentina. Users can enter with cryptocurrencies that they already have or if they cannot get them through the platform.” In Argentina, it also offers the possibility of buying crypto in pesos, with a bank transfer, through third parties.
Another option for crypto investment segments is called DeFi. One of the most used is BlockFi, a platform that pays in different cryptocurrencies and even in fiat. It handles aliquots of up to 8% for some cryptocurrencies. It is a system where the user charges balance on the site, chooses the option that interests him the most, and then collects the dividends on a monthly basis to a user’s digital wallet. It should be noted that dividends can be collected in even stablecoins, a kind of digital dollars. Another popular platform for this type of movement is the Celsius Network. The site has a calculator that allows users to play with more than 20 currencies and different interest rates. It is thus possible to generate weekly profits with the platform that are then paid directly to the users’ virtual wallet.
Another company that has local operations, BuenBit, offers “paid” accounts in its flagship DAI stablecoin. Through the DeFi system you can have the balances in DAI of the Saving Mode or Interest Mode platform; It is a method that rewards you for saving DAI, generating passive income from this same cryptocurrency.