San Luis, Argentina, Passes Bill to create Dollar-pegged Stablecoin

A new legislation, titled “Financial Innovation for Investment and Social Economic Development,” has been passed by authorities in San Luis which can be seen as a significant step toward the region’s road to digitization. 

The bill intentends to use blockchain technology for the improvement of San Luis. The terms “financial innovation” and “social, economic, cultural, and financial inclusion” are used to describe some of these benefits.

A stablecoin is to be created as a part of the bill. The possible stablecoin that could be issued as an outcome of the bill will have all of its value backed up by liquid assets held by San Luis.

When it becomes available, it will be made available to all residents of the state. The existing law just establishes a framework for the development of this stablecoin, therefore its precise operation remains unknown.

In addition to this, the law bestows upon the state government a comprehensive set of powers in relation to blockchain technology. This covers the creation of platforms utilising blockchain technology as well as training programmes for blockchain. 

The city of San Luis also has high hopes that the technology will help boost transparency and aid speed administrative processes In addition to decreasing the amount of paper used by state entities.

The law mandates that anyone wishing to acquire cryptographic assets within the state must be at least 18 years old.

San Luis is not the Only One

The application of blockchain technology for the betterment of society has just spread to San Luis. An example of a private initiative aimed at generating cash for local communities is a cryptocurrency called CityCoin. 

This is a project that enables allied municipal authorities to launch their very own coin on Stacks. The first communities to do so were Miami and New York City, which launched its own tokens under the names MiamiCoin and NYCCoin. 

As part of the agreements, local governments are eligible to get incentives in the form of CityCoin and can stake the asset in order to receive additional Bitcoin benefits.