Stablecoins, such as the BRZ, are expected to gain even more prominence in the crypto market, following the adoption of crypto assets by the public in general.
The search for the sector’s regulation also sheds light on the stablecoins, which generates discussions about how to ensure economic freedom and financial autonomy.
To address this issue, Transfero’s CFO, Carlos Eduardo Russo, prepared a special presentation for Rio Info 2022. The event will have its 20th edition on September 12th, at the Fairmont Hotel, in Copacabana.
Dollar-pegged stablecoins alone saw a 20-fold increase in market capitalization from 2020 to 2022. Meanwhile, the BRZ became the largest fiat stablecoin not pegged to the dollar in the world and was the fourth most traded stablecoin in terms of financial volume.
“It’s an achievement by a Brazilian company. I will address that in the presentation. And also show that the industry’s growth presents opportunities for the crypto market as a whole”, said Transfero’s CFO.
Russo will focus part of his presentation on explaining the differences between centralized and algorithmic stablecoins. Understanding these concepts is crucial for the audience to create autonomy and independence, so necessary to establish healthy market growth. “Centralized stablecoins are a very safe business, but algorithmic brings risks, as happened with Terra (Luna)”, the executive points out.
Crypto asset regulation at sight
“The latest talk from Central Bank officials indicates that they have an intention to regulate this market, especially with regards to transparency”, says the executive.
For the users, the rules can bring more security. And knowledge is also essential here since collateral will be shown to the public, who need to understand what this means to make their decisions freely. The composition of collateral is part of what Russo will address in the presentation at Rio Info 2022.
The stablecoin trend is so important that it has not gone unnoticed by the Central Bank. Recently, the institution’s president, Roberto Campos Neto, stated that the agency is discussing how to create the digital real, a CDBC. The crypto asset will work like a stablecoin but in a more controlled environment.
This means, for Russo, that all segments of society will be affected, not just the crypto sector. In other words, learning about stablecoins has never been more necessary.