Stablecoins have been a hot topic in the last couple of weeks and it seems that the whole sector came under scrutiny. The storm around Terra has weathered and it seems so far that the dominant stablecoins who remained are indeed offering some sort of stability. Among them the market leader Tether who made an announcement just yesterday.
What is MXNT and why is this stablecoin especially important?
Latin America is into crypto
Mexico is one of the most economically significant countries in Latin America due to the fact that it has strong ties to the northern hemisphere of the continent. Tether announced yesterday that it is going to launch a stablecoin that is pegged to the value of the Mexican Peso under the ticker MXNT.
MXNT will launch on three EVM compatible blockchains. Which includes Ethereum, Polygon, and Tron. It is to be expected that the stabelcoin will become available on other blockchains if the adoption demands its availability to other protocols.
This is the fourth fiat currency that becomes part of Tether’s stablecoin portfolio along with USDT, EURT, CNHT.
Stablecoins are important
The last two years have revealed that stablecoins have become the backbone of the decentralized economy. Many investors use them to maintain a fiat position in their crypto portfolio or simply price tokens when trading on decentralized exchanges.
An equally important factor is lending and borrowing tokenized fiat. With MXNT investors and traders in Latin America have the opportunity to hold another currency other than the US-Dollar. The region is especially friendly to crypto because many countries are struggling economically. El Salvador is an exception but in other countries, the adoption is also taking place. In many cases, crypto adoption helps people to mitigate record inflation and instability by holding Bitcoin or tokenized dollars.