In a country like Argentina, the question arises about the effectiveness of cryptocurrencies as a way of saving. Leo Elduayen, CEO and Co-Founder of Koibanx, shares his thoughts and highlights how Web 3.0 technologies, including blockchain, are transforming the online experience by offering enhanced decentralization, privacy, security, and control for users.
According to Elduayen, blockchain technology has played a crucial role in financial inclusion by facilitating faster and cheaper transactions, covering areas such as remittances, savings, credit, insurance, payments and transfers.
In addition, it highlights that these cryptocurrency transactions translate into lower costs, greater transparency and faster deadlines, without compromising security.
One of the most prominent advantages of blockchain technology is its potential to foster financial inclusion. In Argentina, there is a clear situation where people can save in cryptocurrencies, even without having formal credit or income elements.
The foregoing is achieved through the use of virtual wallets, which allow operations at affordable costs and generate a user’s financial history, similar to that of a bank account. This enables the building of a credit history and helps model the saving behavior of individuals, as long as they have access to the internet.
Another notable aspect is the impact on remittances and international payments. Blockchain technology has demonstrated its ability to reduce the costs of intermediaries involved in transferring funds between countries, while streamlining the process.
When considering the choice between bitcoin and stablecoins, Elduayen stresses the importance of researching and understanding the features, benefits, and risks associated with each option.. He advises potential investors to seek professional financial advice and make decisions based on their personal goals and risk tolerance.
The Koibanx CEO also offered practical advice to those just getting into the world of cryptocurrencies. He urges them to perform risk analysis and due diligence before investing. When evaluating a cryptocurrency, he suggests considering key aspects such as its underlying technology, whether it is open source, the existence of a strong support community, the transparency of how it works, and the experience of the team behind the project.
Finally, Elduayen cautioned against potential red flags, such as promises of guaranteed returns, and emphasizes the need for crypto companies to talk about estimated, projected or desired returns, rather than promised ones.
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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