As of 3 August 2023, Ripio users in Argentina, a country grappling with staggering annual inflation rates of 115%, gained access to the UXD stablecoin, also known as Criptodólar. This stablecoin is also available in Brazil and operates on LaChain, a Layer 1 blockchain specifically tailored to Latin America, which Ripio introduced in collaboration with other entities, including SenseiNode, Num Finance, Cedalio, and Buenbit.
Ripio officials cited by coindesk.com noted that despite a bearish crypto market, the adoption of stablecoins in Latin America has been on the rise, becoming increasingly commonplace. They also highlighted the significance of this move, stating that Criptodólar is an innovative solution designed to aid individuals in combating inflation and safeguarding their assets. The company plans to integrate UXD into its Ripio Card, further enhancing accessibility for its users.
Ripio's presence extends beyond Argentina, as it has expanded its operations to Brazil, Uruguay, Colombia, Chile, Mexico, the US, and Spain, where it recently obtained regulatory approval to operate as a cryptocurrency exchange. With a user base of 8 million and facilitating transactions worth USD 200 million monthly according to coindesk.com, Ripio is looking to consolidate its position as a major player in the Latin American crypto market.
In August 2022, Ripio introduced its prepaid debit card and cashback program in Brazil. The new card allowed Ripio account holders to utilize their crypto assets for payments at conventional retail locations. The platform offered support for payments in 28 different cryptocurrencies, and users also gained an opportunity to earn 5% cashback rewards in Bitcoin.
In collaboration with Visa, Ripio aimed to distribute 250,000 physical cards by the year's end. Additionally, the digital version of the card was already accessible to users when the news broke. Furthermore, the company was actively exploring potential markets in countries like Colombia, Mexico, Spain, and Uruguay for future expansions.
According to Reuters, a recent monthly analyst poll conducted by the central bank of Argentina revealed that expectations for consumer prices to increase remain firmly in triple-digit territory. However, the forecast has shown a slight decrease compared to last month's survey.
The polled analysts predict that annual inflation for 2023 will stand at 142.4%, which is lower than the 148.9% estimated in the previous poll by the central bank. Reuters further reveals that the persistently high inflation rate has adversely affected Argentina's already struggling economy, leading to an increase in poverty levels and a gradual weakening of the peso currency.
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