Faced with a change in the political and economic cycle, opportunities appear from the fintech world that could accompany the country's growth. The tokenization of assets, a form of digitization of goods in the real economy, serves as a bridge with the financial world, may be the key to unlocking the financing of the domestic market, in a context of falling bank credit and unknowns about the monetary future.
From grains to property to contracts, various goods in the real economy have been digitized in recent years. Cryptographic tokens not only store information about the asset they represent, but, being digital, they can be exchanged, sold or used as collateral for a credit in a much more agile, secure and efficient way than what was possible until now.
Argentina is a pioneer in the region in terms of digitization of these assets of the real economy. Now, the Fintech Chamber maintains that progress can be made in a regulatory framework that allows for the deepening of tokenization and thus obtaining other savings and investment instruments.
According to calculations by the business chamber, the country's agricultural sector alone could tokenize more than $60 billion in the coming years.
Specifically, they estimate that if Argentina produces between 135 and 140 million tons of grains per year, and half of them are stored in silo bags and then marketed at US$ 300 per ton, some US$ 21,000 million could be tokenized "generating immediate liquidity that can be used as support in short-term commercial credit lines. as collateral in financial institutions or even as collateral to access the capital market."
But, according to the study, the biggest possibility opened up by this technology is to tokenize the grains of next year's campaign, which is called "grain in production."
"This would make it possible to digitize the 140 million tons to be harvested next year, for the equivalent of about US$ 40,000 million, and use them as collateral for loans that, in addition to the traditional banking channel, could be taken through the capital market, where institutional and private investors are looking for alternatives to place their money in backed assets and measurable risk."
Digitization of wines, polo horses and airline tickets
"Argentina has already taken a step forward and advanced in the digitalization of real estate, wine, energy, rental contracts, polo horses, avoided greenhouse gases, plane tickets and even future earnings of athletes. The usability and potential of this technology has no limits," they say in the chamber and maintain that this technology could be used in other sectors.
"We promote the tokenization of real assets because we believe it has enormous potential to leverage growth and generate new business models for entrepreneurs in Argentina," said Ignacio Plaza, president of the Argentine Fintech Chamber.
For this technology to "take off", they insist, adjustments to the current regulatory framework are needed. A clear and flexible one "would make the country an attractive destination for investors and entrepreneurs, and promote a favorable ecosystem for the creation of innovative and job-generating companies," the study said.
What should the country's regulators work on to make this possible? On the one hand, the Fintech Chamber says that the creation of a "multi-agency regulatory sandbox" would be useful. Until now, the CNV and the Central Bank had "test" initiatives in a limited, but safe, legal environment, but they worked in isolation.
The Fintech Chamber asks that the game be opened to different regulators in the same space, where in addition to the Central and the CNV, the Financial Information Unit (UIF), the Superintendence of Insurance of the Nation (SSN) can coexist. "This would reduce bureaucracy for emerging projects, shorten time-to-market, facilitate startup funding, and foster innovation."
At the same time, the Chamber asks that the CNV not apply the rules of the capital market to regulate cryptographic tokens, but, on the contrary, that more general rules such as consumer protection, personal data, among others, be applied to these goods.
On the other hand, businessmen argue that if the CNV established clear regulations for private supply, it could be made more accessible and reach more players. "This measure would facilitate the management and transfer of underlying assets and generate expertise to tokenize other types of securities, including marketable securities."