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Moneta: a 'cryptoweight' linked to the Mexican currency

2021-06-30T15:04:52.256Z


The Bank of Mexico and the Ministry of Finance warned about the risk in the use of virtual assets in the country


An illustration of the cryptocurrencies litecoin, ripple, and ethereum.Jack Taylor / Getty Images

The world of cryptocurrencies is expanding.

In Mexico, the Moneta company has launched the MMXN cryptocurrency based on blockchain technology, where cryptocurrencies such as bitcoin or ethereum first emerged.

However, unlike other virtual currencies, the MMXN is based on the Mexican peso.

"It is a

stablecoin,

that is, a special

cryptocurrency

that, unlike others, is backed by a physical asset, which in this case is the Mexican peso," José Guadiana, Moneta's vice president of communications, explains by phone.

This digital asset promises users a value exactly on par with the Mexican peso, making its price not as volatile as other digital currencies, such as bitcoin. In April, bitcoin reached a record high of $ 63,410.3 per cryptocurrency (about 1.3 million Mexican pesos), an 800% rise in the last year. Subsequently, the value of bitcoin depreciated 50% since that escalation.

For this reason, the Bank of Mexico, the Ministry of Finance and the National Banking and Securities Commission warned users of the country about the use of digital assets, since they do not constitute legal tender in Mexico nor are they considered as low currencies. the current legal framework. "The financial authorities reiterate the warnings about the risks inherent in the use of so-called 'virtual assets' as a medium of exchange, as a store of value or as another form of investment," said the central bank.

The cryptoweight and bitcoin have generated an investment furor in Mexico.

Entrepreneurs such as the controversial Ricardo Salinas Pliego have openly expressed their intention to carry out operations in virtual currencies within institutions such as Banco Azteca, owned by the Mexican magnate.

"I recommend the use of bitcoin, and my bank and I are working to be the first bank in Mexico to accept it," said the businessman through his Twitter account.

The secret to investing in #Bitcoin is to buy now and not sell.



It only sells for a specific purpose or out of necessity… and if you invest well, the second will not happen 😎.



Diversifying your investments is necessary and smart 😌.

- Ricardo Salinas Pliego (@RicardoBSalinas) June 28, 2021

In the case of cryptocurrency, although price stability is promised by having the backing of the Mexican peso, this cryptocurrency is not supervised by Mexican banking authorities.

Moneta's system pays its own auditors to attest to its operations and the support it has through Blockchain technology.

"There are various processes in security: blockchain technology that allows the transparency of transactions through a smart contract," explains Guadiana.

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There are other

stablecoins

or currencies that use current currencies as backup methods.

Teher is a cryptocurrency that offered its users the backing of the US dollar, but has faced accusations for not being able to corroborate that it has sufficient reserves to back it up.

According to Moneta, a stable price currency is indispensable for the massive adoption of blockchain technology in Mexico, and it would facilitate the transfer of an asset from one place to another without the intervention of third parties.

Since last year, the adoption of digital currencies has increased in the world.

According to a report by CoinMarketCap, the value of the cryptocurrency market in Mexico is 400 million dollars and the figure is expected to increase by the end of the year.

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Source: elparis

All news articles on 2021-06-30

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