A law permitting the creation of its own stablecoin tied to the dollar was enacted by the Argentine province of San Luis. The "Activo Digital San Luis de Ahorro" token, which will be made available to all province residents over the age of 18, is entirely secured by the government's liquid financial assets.
The province is permitted to issue the stablecoin up to 2% of its yearly budget under the terms of the bill. It also allows for the transfer of assets between parties, however it is unclear which chain will be used in these transactions. There are more than 430,000 residents in the province of San Luis.
The stablecoin issuance is just one of the programs outlined in the bill titled "Financial Innovation for Investment and Social Economic Development," which seeks to use blockchain technology to advance development across a number of province-wide industries, including generating value and enhancing auditing processes.
The measure permits regional artists to issue nonfungible tokens (NFTs) in addition to the stablecoin with the intention of fostering financial and cultural inclusiveness. As per the bill:
"The SAN LUIS ART DIGITAL ASSETS will be art collections from the Province, giving local artists the opportunity to digitize their work and have it launched on the digital market through an internal web platform for purchase and sale. For the creation of these collections, NFT (Non Fungible Token - Token No Fungible) technology will be used, making this work of digital art unique, granting ownership and authenticity to the artist or holder of the digital asset."
In Argentina, where two digit inflation has driven business and governmental endeavors into cryptocurrencies and blockchain technology, a difficult economic environment is driving crypto adoption. FocusEconomics experts predict that Argentina's inflation will reach 73.5% by year's end.
According to a Chainalysis analysis, more than 30% of Argentine consumers now use stablecoins to make regular purchases, most likely for modest retail transactions.