Argentine cryptocurrency exchange Buenbit reported last week that it added four new stablecoin call options: USDT, USDC, BUSD, and UST. These cryptos are now added together with DAI to form a new stablecoin portfolio.
The decision that BuenBit qualifies as relevant for the regional crypto ecosystem is motivated according to them because today more transactions are made in stablecoins than in any other cryptocurrency. In addition, in this way, BuenBit users will now have greater freedom and agility than before to choose the stablecoin adjusted to their needs within the platform.
Regarding this expansion of options in the stablecoin market, Federico Ogue, CEO and Cofounder of Buenbit, pointed out that they will continue to work and support DAI and the MakerDAO project, with which since the beginning of Buenbit in 2018, they have been working.
“We are very proud to look back and be able to say that our bet was correct, of having gone ahead and being pioneers in the positioning of stables in the regional market. Now we must continue adding value to the ecosystem by responding to the new needs of all Latin Americansyes,” Ogue said.
What does each of these stablecoins contribute?
According to Buenbit, currently, A good part of Latin Americans in general and Argentines in particular have already heard about cryptocurrencies and/or know what stablecoins are. For them, this translates into a growing interest in different types of crypto, an incipient maturity of the ecosystem and more demands.
For his part, Ogue explains that Buenbit users, among many other things, increasingly ask for more diversity, including having the option to choose between the different stablecoins available on the market. In this regard, it should be noted that the incorporated cryptocurrencies were selected by the vote of the BuenBit user communitybased on some of the advantages and characteristics described below:
USDT: it is issued by Tether Ltd, a subsidiary of Bitfinex, making it a centralized stablecoin. The big advantage of USDT is that it has the highest trading volume and liquidity. This makes it easy to trade against other cryptos and on different blockchains.
USDC: like USDT, it is centrally issued, but in the hands of Circle. It is the second in liquidity in the market and, therefore, it is also widely used in most of the most well-known platforms and networks. The USDC difference is that its dollar backing is audited by the United States Securities and Exchange Commission (SEC).
BUSD: it also has its issuance centralized, it was created by Binance in partnership with Paxos. The advantage for users is that withdrawals from Binance are discounted and it is very useful, mainly for users of the BNB Chain (ex Binance Smart Chain). It is regulated by the New York State Department of Financial Services (NYDFS).
UST: considered an algorithmic stablecoin, it has a novel operation. The differential offered by this crypto is the possibility of obtaining returns close to 20% thanks to the system that implemented the Anchor protocol in the Terra network.
A significant change
Likewise, BuenBit wanted to expand the reason why they had not opened to other stable coins, and according to them they point out, in 2018, they were not as popular as they are today. Crypto awareness and adoption levels were lower than they are today, and therefore users were not familiar with the stablecoin concept. “In simpler words, we trust”Ogue commented.
In this sense, the initiative to list only one stable crypto was related, as they say, to providing users with an easy, secure and free of complexities access door. “The company decided to limit itself to offering DAI and rewarding its withdrawals (at that time on the Ethereum network) in order to offer the best experience”they pointed out.
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