Num Finance, an Argentina-based blockchain and web development company, has launched the nCOP stablecoin, pegged to the Colombian peso. This strategic step follows Num Finance’s recent success in securing $1.5 million in a pre-seed funding round back in May. With this new venture, Num Finance is positioned to revolutionize the remittance market in Colombia.
Venturing into the Colombian Market
The nCOP stablecoin, built on the Polygon network, presents a game-changing solution for the remittance market in Colombia. This overcollateralized stablecoin offers unparalleled stability and security, making it an attractive choice for individuals engaged in remittance transactions.
Remittances, amounting to over $6.5 billion annually in Colombia, constitute a crucial use case for stablecoins. This further reflects the immense potential of Num Finance’s innovation.
Empowering Users with the Num Yield Feature
One of the standout features of the nCOP stablecoin is the incorporation of the “Num yield feature.” This innovative mechanism enables users to receive rewards in the form of nCOP. Therefore, it offers a unique opportunity to earn from their holdings.
Agustín Liserra, the visionary CEO of Num Finance, elaborates on this distinctive aspect, stating,
“In Colombia, there exists a unique opportunity to ‘tokenize’ remittances and offer them a yield in nCOP, based on regulated financial products. Currently, Colombia is one of the main recipients of remittances in Latin America.”
Num Finance’s Successful Journey
The nCOP stablecoin signifies a major milestone in Num Finance’s journey of creating value within the blockchain ecosystem. This is the company’s third successful stablecoin launch, following the nARS, pegged to the Argentinian peso, and the nPEN, pegged to the Peruvian sol.
The success of these stablecoins is a testament to Num Finance’s expertise and commitment to driving innovation in the blockchain and web3 landscape.
Num Finance’s path to success has been illuminated by its recent pre-seed funding round, led by Reserve protocol, which raised an impressive $1.5 million. At the time of funding, Num Finance had already circulated more than $2.5 million worth of nARS and nPEN stablecoins.
With this momentum, Num Finance is exploring new opportunities, with plans to launch stablecoins tied to the Brazilian real, the Mexican peso, and the Colombian peso.
Nurturing Local Financial Systems
While Num Finance’s groundbreaking move is poised to transform remittances, the Colombian central bank is also considering a significant shift in the financial landscape. The potential issuance of a central bank digital currency (CBDC) by the Colombian central bank could further enhance remittance processes.
However, the bank is taking measured steps to safeguard the local financial system, emphasizing the importance of holding and transaction limits for any future CBDC.
Mastercard’s Shift in Latin America
In a related development, Mastercard has disclosed its decision to discontinue support for Binance crypto debit cards in Latin American countries, including Colombia. This decision reflects the evolving dynamics of the cryptocurrency landscape and its intersections with traditional financial systems.
Read More:
Major Developments in SEC vs Ripple Case as Legal Teams Undergo Changes
Crypto Market Volatility and Bitcoin Price Predictions: Insights from Pantera Capital Founder