Latin America’s digital assets firm Bitso recently noted in an update covering the benefits of stablecoins that when consumers have medium- or long-term plans to make any type of purchase or transaction, they tend to create a savings fund that “allows them to achieve their goals.”
For this reason, it is said to be quite common to use digital financial tools with which you can set aside money, but “not all of these services allow you to get the most out of your capital.”
Bitso, the crypto-powered financial services company in Latin America, shares an “effective” way in which people can benefit from an efficient and accessible solution for daily life: digital dollars.
Digital dollars are stablecoins, linked 1:1 to the value of the US dollar (USDC and USDT, for example).
That is, their price is equal to that of the US dollar.
These assets not only provide protection against the devaluation of local currencies, but on some platforms such as Bitso they also offer interest of up to 4% per year, so they can also “be used to save in the medium term, protecting money from exchange rates and also generating returns.”
In the past month, the Mexican peso has fluctuated against the dollar between just over 19 and 20 pesos, so it is “not unusual for people to look for the best option to make their money grow.”
Given this scenario, the growth in the price of the dollar, coupled with the returns granted by some entities, becomes an attractive and convenient “alternative for medium-term savings.”
For instance, if you are planning a trip to another country or a tour in different countries within one or two years, or perhaps you want to “purchase a device such as a computer or a video game console, saving in digital dollars is an alternative with which you can access the fulfillment of these objectives, while protecting your savings and making them grow.”
One of the attractions of these currencies in exchanges like Bitso is their immediate liquidity, which allows people to “access their money, see how it evolves and even acquire more digital dollars at any time, because crypto markets operate 24 hours a day, seven days a week.”
Although exchange offices and banks are the most popular options for exchanging your pesos for US dollars, digital platforms offer an “alternative to get the most out of the exchange rate, without having to travel or do so at a set time.”
Saving in digital dollars has “multiple advantages.”
If you are looking to protect yourself from inflation and benefit from the exchange rate, this is a great option.
As covered, Bitso is the crypto-powered financial services company in Latin America, with a community of 8 million+ customers as well as around 1,700 institutional clients.
Bitso explains that it offers a range of products: from a digital platform to earn returns, make transfers and remittances between countries, to exchange and store a variety of more than 50 cryptocurrencies, as well as products for institutional clients to make “local and international payments,” via Bitso Business —Bitso’s B2B unit that provides the infrastructure needed for the future of cross-border payments.
Established back in 2014, with more than 500 workers in 35 different nations, Bitso is working to make crypto useful by harness the sheer power of borderless, secure financial products.
Bitso says it is committed to enabling the region by offering “universal” access to the digital economy of the future and supporting a “fairer” monetary system.