Num Finance has taken a new step into the future of boarderless digital finance, launching nCOP, a token pegged to the Colombian peso. Employing the expansive capabilities of the Polygon framework, nCOP offers an over-collateralized means of transfer, payment, saving, and even earning via blockchain technologies.
Stablecoins, though they’re often overshadowed by the media hype around fluctuating cryptocurrencies, are an expanding digital asset sector, currently valued at around $124 billion. They’re most popular in developing regions with weaker financial infrastructures, such as Latin America or Turkey. Indeed, the dominant nature of stablecoins may well be their flexible applicability. Beyond regular transactions, these blockchain-powered proxies for traditional currencies can facilitate remittances, and even serve as a store of value, according to crypto research giant Chainalysis.
In the words of CEO of Num Finance, Agustín Liserra, “Colombia is one of the main recipients of remittances in Latin America, with nearly USD 10 billion flowing into the country.” nCOP, the firm believes, is a new avenue for people to send and receive these funds, while adding the prospect of yielding profit.
But Num Finance isn’t new to the stablecoin scene. In fact, the issuer has already rolled out Argentine peso and Peruvian sol-based stablecoins, and already set its sights on local currencies in Brazil, Mexico, and Bahrain for future editions.
On the other hand, skeptics might point out that this new form of money is still tied to the health of the pegged currency and that the economic conditions of the home country can affect the tokens. Besides, they also underline the growing concerns in the regulation scene, pointing out that it might challenge the widespread use of such tokens.
In essence, with a broad vision for the future, Num Finance is squarely positioning itself in the vanguard of stablecoin innovation, and in turn, augmenting the potential for blockchain’s inclusive financial future. However, the journey to mainstream adoption and overcoming regulatory hurdles is still a tough one. Only time will tell how these innovative projects will eventually pan out in the real world.
Source: Coindesk
