The Argentine city of San Luis has passed a law that allows the issuance of its own stablecoin pegged to the US dollar. The Activo Digital San Luis de Ahorro token will be accessible to all citizens over the age of 18 residing in the city. The US dollar-pegged Activo Digital San Luis de Ahorro token will be 100 percent secured in the city’s liquid financial assets.
The law would allow the city to issue stablecoins up to 2 percent of its annual budget. While the approved stablecoin law also allows for assets to be transferred between parties, it has not yet specified which chain it will take place on. The city of San Luis is home to almost 430,000 citizens.
However, the issuance of tablecoins is just one of the initiatives described in the Bill Financial Innovation for Investment and Social Economic Development, which aims to stimulate development in various sectors of the city, including generating value and improving supervisory procedures.
It may interest you: Argentina lost 2-1 to Saudi Arabia: Fan token lost 31 percent!
On the other hand, the law revealed that alongside the stablecoin, it will allow local artists to issue NFTs to encourage financial and cultural inclusion. The bill contained the following statements on the subject:
“San Luis Art Digital Assets are what will become the city’s art collections. These assets will provide local artists with an internal web platform to digitize, buy and sell their work. NFT technology will be used to create these collections. The use of NFT technology will make artworks unique and give authenticity and ownership to the artist or owner of the digital asset.”
The complex economy, with double-digit inflation driving corporate and government initiatives to cryptocurrencies and blockchain technology, is driving crypto adoption in Argentina. FocusEconomics analysts expect the inflation in Argentina to be announced as 73.5 percent by the end of the year.
Recently, a report by Chainalysis revealed that more than 30 percent of consumers in Argentina already use stablecoins, most likely to make small individual transactions and daily purchases.