Brazilian investment giant BTG Pactual has announced the launch of BTG Dol; a U.S. Dollar backed stablecoin, the first of its kind for the bank. Aimed at providing clients with an easier, safer and smarter way to invest in U.S. dollar, the new offering will allow customers to "dollarize" part of their equity and interact between the traditional financial system and the new digital economy. The BTG Dol, based on the bank’s proprietary crypto technology Mynt, follows the bank’s previous partnership with U.S.-based cryptocurrency exchange Gemini for custodial services for its digital assets.

With the launch of a stablecoin and the potential to use cryptocurrencies to pay taxes, Brazilian banks have made serious strides in their adoption of the new digital economy. BTG Pactual’s Head of Digital Assets, André Portilho, believes the BTG Dol stablecoin is the perfect first step towards adoption, creating a trusting environment with familiar currency. The savings potential due to the blockchain technology, combined with the stable currency, is expected to open up many more doors to the crypto world, since events such as bank runs and subsequent capital outflow run the risk of rendering any currency unstable. Furthermore, as the Winklevoss twins have eluded to, the exchange of goods and services could become increasingly blockchain-based, meaning the economy at large could be soon headed for a full transition.

The transition to the decentralized economy may not be seamless, and the instability of cryptocurrencies must be taken into consideration when letting them loose in the market. Unstablecoins, a type of token that does not have a true or faithful peg to a certain fiat currency, for example, tend to fluctuate in price much like any cryptocurrency, but hold even higher risks due to the lack of assurance of balance provided in prior cases. Despite such challenges, Brazilian banks and resources such as Mynt allow customers to venture off into the new digital economy while still maintaining a connection to the more “traditional” financial system.



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