“The only and exclusive stablecoin cryptocurrency that is secured by Mexican pesos” – this is how the Mexican company Moneta Digital, which specializes in digital payment services, has announced the launch of the MMXN. It is the first globally available stablecoin that is linked in a one-to-one ratio to the Mexican peso. The MMXN will be available through the Mexo cryptocurrency exchange.
In the initial phase, Moneta will offer its customers the purchase of other cryptocurrencies via MMXN. Minimum bet: 1,000 pesos (around 41 euros). The entry into the transfer and payment business is to follow later. The use of the MMXN will “facilitate all types of transactions, such as switching between fiat currencies and digital assets, sending and receiving international transfers and other forms of payment”. Thanks to the blockchain, MMXN is completely transparent, according to Moneta Digital.
Stablecoins are mostly dollar-pegged
There are already dozens of stablecoins out there. The cover is mostly in traditional currencies, above all the US dollar. Secondly, currencies such as the euro, Canadian dollar or South Korean won are used. With MMXN, an emerging market currency is now also included.
In one Interview with the Mexican newspaper The Day warns Diego Montes from Legal Paradox, a company specializing in fintech and blockchain, against viewing MMXN as an investment vehicle. “The stablecoin is supposed to imitate the value of a currency or a currency issued by a central bank, that is, the value of the dollar or the euro or in this new case the peso.” The stablecoin cryptocurrency eliminates volatility. “What their developers do is hold reserves in Mexican pesos, that is, if I want to spend a million MMXN, I have to have a million pesos.”
MMXN is developed on the Ethereum and Tron blockchain under the ERC-20 and TRC-20 token standard with tested smart contracts and backed with Mexican pesos. This should guarantee that there is a peso behind every MMXN. The reserve of unknown size is being audited by a US accounting firm. The money apparently comes from the venture capitalist Kriptal, an incubator of various blockchain projects.
The Central Bank of Mexico is distancing itself from the project. “In our regulation we spoke very clearly about a healthy distance between crypto assets and the (official) financial system,” emphasizes central bank chief Alejandro Díaz de Léon.