San Luis, a province of Argentina, has approved a bill allowing it to issue a blockchain-based, dollar-pegged stablecoin, as the bill, which also approves the issuance of local artistic assets as nonfungible tokens (NFTs) seeks to enable the promotion of social development, and economic, cultural, and financial inclusion using blockchain.
It has been reported that the legislators of the province recently approved a bill designated with the number VIII-1085-2022, called “Financial Innovation for Investment and Social Economic Development,” that introduces blockchain as a tool to potentiate the development of several fields in the province, including generating value and improving auditing processes.
However, as part of this law, San Luis contemplates the issuance of its own dollar-pegged stablecoin. The token, denominated “San Luis Savings Digital Asset,” will be available to all citizens of the province and will be 100% collateralized in liquid financial assets of the provincial state. It is still unknown if this digital asset will be used as a currency or will merely function as a kind of debt bond, as the rule set for this law has still not been created.
The report said that the law also establishes that the province will be able to issue up to 2% of the annual budget of the province. The law does not specify the chain on which these assets will be issued, but does establish that they will be transferable between users via different wallet accounts.
Argentina has recently made moves to include blockchain tech in its development plans with the issuance of a blockchain national framework presented on December 7.
Thus, the document, which also creates a national blockchain committee, describes two areas in which blockchain tech might be useful: auditing and identification. It does not mention currency issuance.