Num Finance, an Argentina-based blockchain firm, has introduced nCOP, a stablecoin pegged to the Colombian peso.

The stablecoin operates on Polygon and has been designed for the remittance market.

Colombia's Need for Stablecoins

Colombia, which annually receives more than $6.5 billion in remittances, offers a significant use case for stablecoins.

The company's nCOP stablecoin is overcollateralized, ensuring stability. It includes a feature called the "Num yield feature," which facilitates rewards for users in nCOP.

Num Finance's CEO, Agustín Liserra, expressed enthusiasm about this new development:

"In Colombia, there exists a unique opportunity to "tokenise" remittances and offer them a yield in nCOP, based on regulated financial products."

Num Finance has already launched two other stablecoins: nARS, pegged to the Argentinian peso, and nPEN, pegged to the Peruvian sol.

The introduction of nCOP marks the third addition to their stablecoin offerings.

The Colombian central bank is currently deliberating the possibility of issuing a central bank digital currency (CBDC).

This CBDC could potentially be used for remittances. To safeguard the local financial system, the central bank is considering implementing holding and transaction limits on the future CBDC.