There is already a cryptocurrency in Mexico to invest in TrueUSD (TUSD) dollars based on blockchain technology. With this token you can invest in dollars since its price is the same as that currency -that is, 1 TUSD is equal to 1 dollar-, unlike other cryptocurrencies whose price is established according to the supply and demand of the same.
What are TrueUSD?
TrueUSD is not creating its own ecosystem or a new market, nor does it have a long-term virtual development objective like Bitcoin and Ethereum did at the time. It is simply an investment tool in that currency and the TUSD token is backed by a trust in which there is the same amount of dollars as TUSD.
This bank account is seized or as in English it is told, in escrow. This means that nobody can actually touch that money, it is only in a closed bank account, and when a user redeems their tokens for money, what they fluctuate are the available investment dollars investing in cryptocurrencies.
Unless you live on the northern border of Mexico or have a transnational company, the various financial institutions do not issue dollar accounts to individuals, which limit the investment options in dollars to the purchase and sale of the currency in private homes. Change. Another option is to have a forex account, but it is made for long-term trips abroad and not necessarily for investment.
Now with the TUSD can be moved dollars to digital wallets in the same way you would do with any other token as bitcoin or ether, make payments to international companies that accept this type of cryptocurrency and redeem them in cash just as you would when you sell the dollars that you keep under the mattress.
In summary: a bank account has 100 dollars and the cryptocurrency exchange markets can sell 100 tokens. If they run out, they cannot generate more. When someone sells them, that amount is made available again.
As TrueUSD and its backup account is part of the blockchain-based asset digitization platform, TrustToken is audited weekly by independent auditors who monitor that no more dollars are sold than there are in the account.
What is the charm?
In Mexico it is definitely easier to buy a cryptocurrency than to change your dollars in the bank and putting them under the mattress. In addition, there are few options for investing in dollars that are outside an exchange house or a capital fund.
“The biggest advantage I see is that if you want to buy or sell dollars, you can do it 24 hours a day, 7 days a week,” says José Rodríguez, VP of Payments of the cryptocurrency exchange platform in Mexico, Bitso, who They also have TrueUSD in their offer.
And this coin works exactly like others, being created in Ethereum technology, so you can have a virtual wallet to which you can send your TrueUSD. This means that you can transfer funds in dollars to people or use them to pay for products or services in the digital world without having to go through the currency exchange and lose value.
Of course, when you want to withdraw your funds to a savings account always always always go from dollars to Mexican pesos with the exchange rate of that day. This means that if you want to invest in a cryptocurrency based on dollars to have returns, you have to do the same as if you were buying the paper: buy cheap and sell expensive. These concepts you can learn less in the Small Pig Capitalist investments (here FREE chapter 1), and available in ebook in Google Play, iTunes and Amazon.
TrueUSD is not risk free like other cryptocurrencies
The fact that TUSD is backed by dollars, real paper in a bank, does not mean that they are risk free. The world of cryptocurrencies is still in full development and like any technological innovation, it has digital risks. So do not take it as the biggest investment of your life, better take a look at this video that we prepared about investments in cryptocurrencies so you know more about their risks and opportunities.
Remember that Mexico is a pioneer in legislation on financial technology companies with the Fintech Law and the publication of secondary laws where as of September 10, 2018 these companies must comply with the regulations and be recognized as a financial technology institution by the authorities.