BRLT stabletoken, prelude of institutional financial innovation?
The anatomy of legitimately disruptive financial innovation can be designated by the succeeding stages of development: First, there is the appearance of a new financial product, by definition not regulated, resulting in the extension of the classes of financial assets. Second, a new experimental capital market is developed in which agents are exposed to the speculative nature of the underlying asset. Finally, new payment technologies are introduced resulting in the progressive monetary flows into digital signals, including the overcoming of national borders.
This flow of financial innovation describes the current stage of the crypto-assets projected as means of payments. To a greater or lesser extent cryptocurrencies represents the promises of this new technological paradigm to supply efficient means of payment demanded for the information age. It is known that blockchain tokens can have smaller transactions fees than legacy means of payment such as credit card and that volatility is the main barrier holding acceptance from everyday commerce. The advent of stablecoins is a plausible alternative to solve the dilemma of the great variation of prices over time and finally to reach payment mass adoption.
There is even institutional interest for payment digitization derived from implicit benefits. For Brazil, with data from 2005, the Central Bank estimated that a complete migration from non-electronic to electronic means of payment would generate a social gain of approximately 0.7% of the Brazilian GDP which represents 15.000.000.000 BRL. Other positive externalities for monetary institutions are transaction traceability and forging prevention.
After researching the main ways of developing a working stablecoin for Brazil, considering the fiat pegged, crypto pegged and seigniorage shares, BRLT.Money decided to go for the simplest more robust way in practical terms.
The Brazilian Real Token (BRLT) pegged in BRL was launched in 2018 Q4 as an experimental mean of payment to serve the Brazilian cryptosphere and society as a whole.