Minteo - Stablecoin Opportunities and Use Cases in Emerging Markets

so it's not moving on to the next slide guys oh there it is so uh by 20130 stable coins will be the dominant form of money in Emerging Markets uh that's a pretty big statement right um first of all like who am I to say this so I've been bu building banking infrastructure for like 10 years now I built onep which is probably one of the fastest growing payment processors in Latin America we were doing over $3 billion P pricing a year um and this is something I'm completely convinced about and and and now I'm going to explain where where that growth is going to come from so I think there's like three kinds of use cases for stable coins and Emerging Markets the first is as a store of value um and those cases are based on USD and that's for example di usdc usdt the next case is investment products sort like what we were seeing before like y bearing stable coins so those are based on investment products like bonds or treasuries and those are usdm Ono ethena Etc um and the last one which is the one I'm into which I'm going to delve more is financial infrastructure and it's based on local currencies and payment instruments and that's what we do at M so that's copm so stable coins is a store of value they're based on dollars uh for example usdc usdt die um and this is something that's like it's hard to understand when you don't live in an emerging economy but like getting access to like dollars is very hard so like most banks don't open dollar bank accounts and those that actually can are like very reluctant to do it for like local people so like the easiest way to like save in dollars which is an obvious hedge against local inflation against local currencies which are like tend to like go down in price uh is holding stable coins so and that's pretty much what first to cough the next use case so it's uh investment products these are based on us treasuries um and these allow people to invest in US markets so like right now um if you live in I don't know Colombia Chile you want to open a uh brokerage account you need to have at least $225,000 uh this is a screenshot I took from like Charles sh International yesterday yesterday you can see with a minimum of $25,000 you can open an account there uh the average monthly minimum wage is $250 so you would need to save for like a 100 months to just open an account and start investing in the US market um that's ridiculous right or you can go uh and get usdm and you're pretty much exposed to the same stuff um and this is why the volume is taking off in Latin America very quickly so that's why it all makes sense and the next is um stable coins as Financial infrastructure and then but why do we need stable coins as Financial infrastructure and it's uh because existing Financial infrastructure doesn't really work uh and this is my experience so like uh a in Columbia where I live has 8% downtime of a year 8% downtime is ridiculous like if you think about it that's like several hours uh a month that the bank is down Bank Colombia which is the biggest bank in Columbia was down for 3 days like an entire weekend so people like couldn't use their cards like they can use like their bank accounts like you had to go and get cash from like a friend cuz the bank was completely down uh that seems very crazy that's the reality in a lot of Emerging Markets uh it's expensive most of the apis are broken or there's no banking API so like if you want to build a financial product it's pretty much impossible to do so and then when you are able to do it like there very slow they're cumbersome they're a fragmented system um I like to think of existing Financial rails soort of like as everybody did their own highway so it's like a cobble Street one place you get like brick streets another place uh it's kind of crazy everywhere and and and then for me blockchain is like oh it's like pave roads like uh standard highways for standardized cars or or or containers can you imagine that how like shipping was before containers like everybody came up with their own packages and shipped away like anyway that's that's how the financial system works so like pretty much everybody comes up with like their own like packaging and now we have containers and it's kind of crazy to ship to think of shipping something in a container nowadays not in a container um so what don't Emerging Markets have uh we have no venmo no Robin Hood no cash app no vium no sepa we pretty much have like no decent Financial products um I don't know if any of you are like living in emerging but like it's horrible uh we we basically have like shitty bank apps that's the only thing there is um but that doesn't mean the Market's not huge and and and and and it's been proven wrong so like uh there was this guy like 10 years ago who said like why do like savings accounts and this is like the most basic product like saving accounts in local currencies like they really suck in Latin America they're terrible they're slow they're cumbersome they're not based on mobile and his big idea is like lets to a bank that works on mobile which which I I think if I tried to pitch it to VCS they would look at me like are you an idiot like um are you going to raise money from a for for like a savings account like there's a 100 companies that already do that uh but the guy went ahead and did it he got a catchy name called new bank which is basically naked in Brazil uh he has agreed 100 million users in the last 10 years uh he's doing $8 billion in revenue and a billion dollar in profit it's probably the most most valuable uh startup in Latin America and probably one of the highest growth companies in the history of the world so when you actually do like decent Financial products like the market is huge the opportunity is like really big um and and this what's the key here like they built all the teex stack from the bottom uh it was expensive it took a long time but the user experience is amazing so and this is another big statement Financial infrastructure stable coins leverage blockchain technology lowering the barrier for building amazing consumer and business products so imagine if if like David Bellis had had like blockchain 10 years ago like newbank would have been so much quicker in growth like there' be so many more new Banks like and the region would have like way better products and this is why like I think like everything is going to be stable coins based between here in 10 years thank thanks uh but then stable coins are not dollars uh and I know this might kind sound like a kind of crazy statement after being today's at the stable coin Summit because like uh pretty much everybody's talking about USD uh but there is a world outside of USD I know it sounds weird but there's like 5 billion people who use other currencies on a day-to-day basis uh it's not just a couple of us uh 97 % of operations are done in local currencies um if you go like anywhere like in Africa southeast Asia Latin America Like We Buy Houses in pesos we do everything in our local currencies um there's a big analogy somebody asked me like why don't you use dollars for everything uh why don't you save all your money in dollars and I was like and I'm going to ask you everybody a question so like do you think Bitcoin is going to be worth more than the dollar like 10 years out from now yes would you save all your money in in Bitcoin and this is just a weird audience but like a lot of people are like no because I have to pay my mortgage dollars what if Bitcoin goes to like 5,000 for like three years and then I can't pay rent um it it sounds kind of obvious like it's the same for us I mean we love saving in dollars but at the end of the day like I have to pay for my mortgage in pesos so like I need to have pesos um it's very risky just saving in other currencies and like most local transactions need to be settled on local coins like you can't go and buy a house in another currency uh it's very complex users don't understand it I mean we we we had an nft Marketplace a couple years ago uh the number one most asked question is like what is usdc and number two question was like what is USD uh so people understand like saving in dollars but they don't understand like using them on a day-to-day basis um and that's what we're doing at M so like we' built CM which is a Colombian onchain pistol it's one to one backed uh in fatan local banks we are going to get like uh the rest of Latin America out very soon hopefully out all these years we we're going to have Chilean stable coins uh Peruvian stable coins Mexican stable coins and this is enabling like a new wave of financial products are like amazing so I'm going to tell you about like more than us like what our customers are doing so letho Li for example has over 200,000 users with copen backed debit cards um and I know this sounds kind of crazy but like I have my card here please don't record the number uh it's backed on CM um so every day like I spend from it and I see like CM there's 200,000 people with one of these in their wallets they're basically a bank in dollars so like you save an usdc and then when you want to spend your money you change it back into capm on stable coins you do a very quick swap they use the money and then they come go back to usdc so it's just it's just like better like uh Bank a better currency pair it's more efficient it's easier to use and it's a better user experience and it's kind of crazy that like that we've gone from like 0 to 200,000 users in 6 months so that's like amazing the next really cool use case I'm going to talk about is like tropicus so do they they do payday loans in copm backed by usdc um interest rates in Latin America are very high so at least like in Colombia the user rate is 30% and that's 3 z um so it's a very good business to lend out money in latam um but then most of the lenders are based out of Columbia so like International Banks International lenders Etc so they lend money to like in in you in dollars but then loans are actually like put out in pil because nobody is going to like uh morage themselves on another currency because if their like currency completely like um collapses then you're uh nobody wants to buy a car in dollars it's it's too risky it's too dangerous but then the actual backing is or or the collateral can be in dollars uh and the cool thing is also by having like cm and usdc we can also do derivatives so we can like cover the exchange risk there's a lot of cool stuff going on there and they're starting to like give out payday loans like back in in in dollars in PES I think there's a really good opportunity there I think that's going to be huge in like 10 years out um and the next use case I want to talk about is eery um eery basically sets up like solar panel farms and they allow people to invest in solar energy in a fractionalized manner with copam um and then you just take your copam you you put it into like their token it ACU value you get yields on copm um pretty much and and if you think about it like if we think like the future is all about tokenization and pretty much every real world asset is going to get tokenized and everything is going to be like uh rwa it's going to be tokenized on local coins so people are not going to tokenize like their homes in another currency like nobody's going to be selling uh a house in Chile tokenized in US Dollars it's going to be tokenized in pisos uh it's going to be tokenized uh in in in whatever currency they live in otherwise it's crazy um and that's pretty much very big so um that's pretty much it uh stable coins were always pois for emerging markets yes I think uh to be honest probably some of the biggest like real world use cases outside of like crypto outside of speculation outside of like day trading are actually for emerging markets I think think the developing World already has a bunch of like very good infrastructure I think uh in Emerging Markets we still have to get a lot of that um to some extent we didn't even get like fully fledged fintech and we're just going to go straight for like from like shitty like uh 70s and 90s banking to like uh crypto uh and and skip a lot of like the uh open banking fintech Etc Trends um that's what I think is going to happen so that's pretty much it thanks everybody and if anybody has any questions let me know