On August 24th, Argentina-based financial tech entity, Num Finance, unveiled their latest product – a stablecoin named nCOP, which is pegged to the Colombian peso. The announcement, detailed in a post, positions this stablecoin to tap into the lucrative remittance market of Colombia.
It’s no secret that remittances form a sizable chunk of Colombia’s incoming capital. With more than $6.5 billion received annually in remittances, Colombia’s market showcases a substantial opportunity for stablecoins. Num Finance’s blog post underscores this fact, highlighting remittances as a primary use case for stablecoins like nCOP.
One of the standout features of nCOP is the “Num yield feature.” This innovation allows users to earn rewards directly in nCOP. The CEO of Num Finance, Agustín Liserra, emphasizes the unique proposition nCOP offers. He states, “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 isn’t new to the stablecoin game. They’ve previously launched two other stablecoins: nARS, which is pegged to the Argentinian peso, and nPEN, pegged to the Peruvian sol. With a successful $1.5 million pre-seed funding round spearheaded by Reserve protocol in May, the company showcased its capabilities. At that time, they reported having over $2.5 million of nARS and nPEN in circulation. The company’s ambitions don’t end here; they’ve shared plans to roll out additional stablecoins tethered to the Brazilian real, Colombian peso, and Mexican peso.
In the broader financial landscape, the Colombian central bank is contemplating the issuance of its own central bank digital currency (CBDC), aiming to use it as a means for remittances. They’ve concluded that any future CBDC should implement holding and transaction limits to ensure the stability of the local financial system.
Interestingly, the same day Num Finance made their announcement, news broke that Mastercard will cease support for Binance crypto debit cards in several Latin American nations, with Colombia being one of them. This move potentially opens more room for innovative solutions like Num’s nCOP to make a mark in the region.
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