Ripio, a major Latin American crypto exchange with over 25 million users, has launched a new stablecoin called wARS that is pegged to the Argentine peso (ARS).
This coin is now live on blockchain networks including Ethereum, Base (developed by Coinbase), and World Chain.
Why this matters
- Local-currency stablecoin: By pegging to the Argentine peso rather than U.S. dollars, wARS offers a way for users in Argentina (and more broadly in Latin America) to hold a digital token tied to their local currency instead of relying only on USD-pegged coins.
- Easier cross-border payments: Ripio says it plans to roll out similar stablecoins for other Latin American currencies, with the goal of making payments in local currencies smoother across the region.
- Real-world asset direction: This move is part of Ripio’s broader strategy to bring “real-world assets” (RWAs) onto blockchain rails, including previous tokenised bonds.
What is a stablecoin + why peg to a local currency?
Stablecoins are digital coins whose value is tied to (or “pegged” to) another asset—commonly the U.S. dollar. This is intended to reduce the volatility often found in other cryptocurrencies.
By pegging to a local currency like the Argentine peso, a stablecoin can:
- Enable users in that country to transact digitally without constantly converting into USD.
- Potentially help with local inflation or currency-control issues (though it doesn’t remove risk entirely).
- Facilitate region-specific payments and remittances.
What beginners should watch out for
- Regulation & risk: Even though stablecoins aim for stability, they’re only as reliable as the backing and infrastructure behind them. Local currency pegs may carry extra risk if the currency is volatile.
- Liquidity & adoption: For a stablecoin like wARS to be useful, it needs exchanges, wallets, and payment systems to support it broadly.
- Cross-border use: While the goal is local-currency payments across borders, that depends on multiple jurisdictions and infrastructure alignment.
What this means for Argentina / Latin America
In Argentina, where inflation has been a major issue, having a digital token pegged to the peso gives another tool in the digital-finance toolbox. Additionally, as Latin America sees growing crypto adoption, local-currency stablecoins may offer a more regionally-tailored alternative to USD-pegged tokens.
Ripio’s plan to expand into other currencies means we might see more local-currency stablecoins emerge across Latin America.
Final thoughts
If you’re new to crypto, here’s a simple takeaway:
Ripio has launched a new coin (wARS) tied to the Argentine peso. It’s designed for digital payments and transfers in local currency. It’s part of a broader trend of crypto platforms offering region-specific tools rather than just global USD-based ones.
As always with crypto: do your research, understand the backing and infrastructure of any token, and don’t assume “stable” means zero risk.
