Victor Swezey 0:04
Whats up, and welcome to a particular version of The Buzz, a Financial institution Automation Information podcast. Right this moment is July 18, 2023. My title is Victor Swezey, and I’m the editorial intern at Financial institution Automation Information. Right this moment, we’re embarking on our International Startup Cities sequence, taking you to a few of the most modern tech hubs world wide to present you a have a look at these startup cultures and the markets they serve. Alongside the best way, we’ll be speaking to fintech founders from new cities concerning the merchandise they’re bringing to market. First up, we’re visiting Buenos Aires, Argentina, a metropolis recognized for its world class delicacies, lovely structure, passionate soccer followers and a lot extra. It’s additionally dwelling to a few of the most fun startups in Latin America and was the birthplace of Mercado Libre, Latin America’s main on-line market. Becoming a member of me in the present day are the founders of Num Finance, a startup utilizing stablecoins to assist companies throughout the area scale their operations. Please welcome CEO Agustin Liserra and CGO Mariano di Pietrantonio.Agustin Liserra 1:11
Thanks, Victor. From my facet, properly, I’m Agustin CEO of the of the corporate. Simply as promoting a fast introduction, from my facet, I’ve a background in in each engineering and finance, a grasp’s diploma in quantitative finance. After which over the course of my my profession, I gained in depth expertise in finance and threat administration. I labored as monetary publicity administration supervisor at YPF. That’s the the most important oil and fuel firm in Argentina. And since 2016, my curiosity was captured by the crypto and blockchain world. And I grew to become extremely captivated with this this world. So I joined Bitex, one of many first cryptocurrency exchanges in Latin America. After which in 2020, I made the transfer to Buenbit because the CFO of the corporate for 2 years and a half.

Mariano Di Pietrantonio 2:19
My title is Mariano, as I mentioned, and I’ve greater than 15 years of expertise as a product supervisor in gaming and biotech. And my checklist was seven years working for MakerDAO. Maker DAO for many who don’t know, is the largest protocol within the Ethereum blockchain with greater than 10 billion in whole worth locked in in property. I labored there as head of progress for 4 years methods, communications and partnership.

Victor Swezey 2:55
Thanks. So I suppose, you realize, to start, I simply needed to ask, you realize, why did you discovered Num Finance, you realize, when did that occur? And what drawback had been you hoping to resolve?

Mariano Di Pietrantonio 3:09
Yeah, properly, that’s a query that I at all times prefer to reply, proper. It’s and we based Num for for 2 primary causes. Proper. Firstly, all through our expertise in fintechs, and startup, we determine that one of many largest ache factors in regional within the area is the money administration, proper. And the method of transferring cash typically creates bottlenecks, proper, we one thing in larger costs for purchasers, and that is whatever the trade, proper? And secondly, we noticed the rising adoption of blockchain expertise within the area. After the popularization of a regional greenback, sorry, sorry, further greenback again secure cash, we all know that many individuals had been integrating these stablecoins into their lives proper, however not exactly for funds, however for financial savings, proper. And for us, this indicated that there was an understanding of stablecoins as a kind of asset, proper. This is likely one of the details and mixing these two components, proper, the understanding of the sort of a crypto property and understanding additionally that cell cash initially is fairly tough, proper? Combining these two we’re we realized that it was attainable to create the unique borderless and actual time cash administration system utilizing native stablecoins, proper. And the cool factor about this and that is a lot of the speak at the moment that we have now with Agustin is that we needed to have an infrastructure the place settlements within the area may be finished nearly immediately, proper? And that is how Num Finance got here to life.

Victor Swezey 5:04
And so are you able to simply remind our listeners rapidly what a stablecoin is, you realize, how does it match into the entire crypto ecosystem? And you realize, how does it match into your small business mannequin?

Agustin Liserra 5:16
Yeah, positive. Effectively, stablecoins are mainly blockchain-based tokens, representations of different property, whose worth is tied to an exterior asset, comparable to nationwide currencies or valuable metals or different commodities, for instance. These digital property serves as representations of conventional currencies just like the US {dollars}, the euro, Argentine pesos, or different commodities like gold, for instance. So, basically, stablecoins are collateralized merchandise that may be purchased or bought throughout the cryptocurrency market ideally to ship and obtain cash and for the creation of actual monetary merchandise. One necessary factor right here is that there are stablecoins within the within the ecosystem that aren’t collateralized. In our case, we we’re going for the collateralized facet of stablecoins and never algorithmic stablecoins which are like a distinct a totally completely different chapter.

Victor Swezey 6:30
So, are you able to stroll me by like a particular banking-related use case?

Agustin Liserra 6:35
Stablecoins play a vital function in in banking use circumstances, particularly in rising markets. Right here in Latin America, for instance, they provide a number of advantages that assist folks on this area. First, stablecoins improve accessibility, permitting people with out conventional financial institution accounts to take part in monetary transactions and providers. One one case, I might say that’s residing inertia Argentina is one massive change that’s providing a funds by a pay as you go card in Argentina the identical as Ripio and Let’sBit which are our primary companions. Second, stablecoins promote monetary inclusion by bridging the hole between the unbanked and the formal monetary system enabling financial savings funds and entry to credit score and lending providers. And on this instance, for I used to be I used to be mentioning in a single bit, it’s attainable to transform your pay as you go card right into a bank card by taking a mortgage and doing like a purchase now pay later course of as you need with the amount and installments that you simply choose for to your your money flows and and your selections mainly, then a stablecoins present a quicker and far more economical and safe various for cross border remittances. I might say that it’s the the primary and the primary use case of crypto typically, however with Bitcoin, it was like a nightmare to to do remittances hedging the publicity of the Bitcoin volatility. So stablecoins are actually a use for helpful for these sorts of providers. And eventually, stablecoins drive monetary providers innovation, facilitating the event of decentralized finance functions that broaden entry to monetary services and products in typically. We’re seeing a variety of new use circumstances being developed, however by our companions, our shoppers, the retail phase. So for us is admittedly, actually necessary to construct infrastructure to permit innovation.

Mariano Di Pietrantonio 9:21
Yeah, one one cool factor that I want to add to that’s that we’re right here to assist the banking infrastructure that’s already place proper? We all know that banking infrastructure generally appears to maneuver very sluggish, proper? And there are firms that take that chance to supply different providers what we wish you to listen to is to kinda marry these two issues proper just like the banking infra with the crypto in actual fact proper and Num Finance is doing precisely that. Proper. We’re protecting that that hole. So folks in On this area can have the providers that they want, proper? Simply keep in mind that rising markets are one of the crucial underserved markets when it comes to monetary providers.

Victor Swezey 10:11
And I used to be questioning if we may zoom out somewhat bit. And perhaps when you may inform me somewhat bit about what the startup scene appears to be like like in Buenos Aires, you realize, what’s the what’s the funding ecosystem like? What’s the startup tradition like? And the way do you assume that that may be related to, you realize, the historical past and id of town typically?

Mariano Di Pietrantonio 10:27
Yeah, yeah, that’s, that’s a cool query. The startup scene in Buenos Aires is admittedly vibrant and is rising like quickly, proper? The town has turn into a hub for entrepreneurship and innovation, attracting a various vary of startups throughout properly, varied industries. And the startup is seen in Buenos Aires significantly could be very robust in expertise and fintech sectors, proper. Many ministers are centered on growing cell software program, cell functions, e-commerce platform and different disruptive monetary applied sciences. And we’re additionally seeing this, like actually cool, important progress in sectors like for instance, well being, training, agro, there’s like a bunch of various verticals wherein we’re seeing a very cool progress. And I imagine that the I imply, there are lots of circumstances of that, why is going on. However total what I see, it’s like once I say this turning into one of many primary spots for the digital nomads, proper, to their price of residing, and, and the connection of the associated fee and the standard of life that you’ve got, proper? As a result of though it’s actually low cost for foreigners in Argentina, you continue to can have a fairly excessive, prime quality way of life right here, proper? I’ve many mates from from overseas, and so they at all times inform me the identical factor by this concerning the meals, how the meals tradition right here, it’s superior. It’s a it’s a safe metropolis, proper? It’s fairly protected cities, proper? It’s a fairly protected metropolis. And you may get additionally to journey rather a lot contained in the nation. And since we have now a fairly large nation with many various climates, and really completely different, you realize, issues to go to. So yeah, I imagine that these elements performs an important function to have these sources to get extra folks working right here, and likewise to create startups.

Victor Swezey 12:31
And simply extra usually, how would you say that the startup tradition in Buenos itis in Argentina and you realize, perhaps even in Latin America extra broadly, compares to the USA? And what you realize, what are you? What are some similarities you see? You already know, what are some ways in which you see this startup ecosystem that’s actually been, you realize, rising just lately, how do you see it differing from what we have now in the USA?

Agustin Liserra 12:56
Sure, properly, I might say that I may outline the ecosystem right here in Latin America, by by in the direction of and I might say that this was utilized to each single entrepreneur within the US and in Latin America, however I contemplate that resilience and resourcefulness are the massive key factors in, in Latin America. And mainly, startups in Latin America face important challenges, restricted entry to capital, a very, actually complicated regulatory setting and political and financial instability and adjustments from the left facet of the political events to the precise. So, it’s a fairly tough to, to foretell the long run. So in Latin America, we select to create. So, consequently, I might say that Latin American enterpreneurs have developed outstanding resilient, resilience and resourcefulness additionally, we discover modern options to navigate these obstacles, leveraging creativity and adaptableness additionally, a after which the market traits are presents some similarities and a few variations. I I’ll comment that Latin America presents like a singular market panorama by a big inhabitants and cultural range. So it isn’t, like trivial to, to overcome completely different markets like Brazil, Argentina, Colombia. So it requires a very deeply understanding of this panorama to to achieve success.

Victor Swezey 15:22
And yeah, so to comply with up on the purpose, you realize, you had been you had been talking about a few of the financial instability in Latin America. And I do know that, you realize, that’s been within the headlines concerning Argentina just lately with, you realize, triple digit 12 months over 12 months inflation, and that’s one thing that you’ve got been combating. And I used to be simply questioning, how does how has this financial instability perhaps affected the startup scene? After which, you realize, from the Num Finance perspective, how do you see secure cash interacting with, you realize, what occurs when the foreign money that they’re pegged to is perhaps not very secure, but additionally do you see them as a possible resolution or one thing that may be capable of assist in these sorts of financial environments?

Agustin Liserra 16:04
Yeah, properly, as as you mentioned, financial instability, make it difficult actually difficult for startups in Argentina to safe conventional funding from banks and traders, a distinct buying and selling situations foreign money devaluation, extraordinarily excessive inflation charges create uncertainties, and that results in a risk-averse averse setting in Argentina. And likewise financial instability typically brings challenges when it comes to capital controls, delays in fee processing, restrictions to, to capital markets, additionally, it’s fairly tough to, to grasp the evolution, for instance, about worldwide wires in Argentina, and if you are able to do it or not, and it adjustments each single week. And our enterprise mannequin focuses on on actual time, cash motion, utilizing stablecoins can present the startups with the power to transact swiftly, each domestically and globally. And this will facilitate operations. It’s a actually environment friendly means for cross-border funds and higher monetary flexibility additionally.

Victor Swezey 17:43
Yeah, so thanks a lot, you realize, for all of that, you realize, each about your organization and concerning the state of affairs in Argentina and the startup tradition there and in Latin America extra usually. I suppose I simply needed to complete by asking you, you realize, what, are you touched on this, however what are some fintechs that, you realize, folks within the banking sector, folks concerned with financial institution automation may need to watch popping out of Buenos Aires popping out of Argentina? You already know, what are some fintechs that you simply all are, are enthusiastic about? That, you realize, perhaps needs to be on our radar?

Mariano Di Pietrantonio 18:13
Effectively, I imply, one of the crucial distinguished fintechs to look at it’s, I suppose, you realize, it’s Mercado Libre typically referred because the because the Amazon of Latin America, and whereas Mercado Libre even began as an E commerce platform, it has expanded into FinTech providers by its subsidiary Mercado Pago. And properly Mercado Pago affords and a spread of digital fee options cell wallets, QR code funds, and I imagine that they’re turning proper now into this sort of tremendous app proper in which you’ll be able to just about have all the things. Additionally they added proper now deliveries and a few of these providers too. And since they’ve like a lot of the market on their hand, they develop like actually actually quick proper? However the cool factor is that also they are rising in all of the nations in Brazil in Uruguay in Colombia and Mexico. They’re actually actually, actually massive. One other FinTech that it appears actually fascinating to me for the factor that I that they’re doing is Ualà whereas is one other Yeah, pockets I might say and that it has built-in a QR codes that has built-in and these Yeah, like E commerce platform to create your personal e retailers. They even purchase the financial institution in Mexico, I imagine the ABC financial institution. So yeah, there’s like a few these fintechs which are gaining a variety of traction within the within the area. Yeah.

Agustin Liserra 19:49
I’ll add to what Marian was was saying. One thing associated to your query concerning the Latin American a panorama and it’s that this sort of of profitable firms are being funded by Latin American folks. And it’s a the explanation for that’s that it’s fairly obscure the Latin American issues from exterior. So I may see some challenges in for large firms comparable to Amazon, Apple and, and worldwide firms to introduce the merchandise right here in in Latin America, and this displays an enormous alternative for Latin American startups.

Victor Swezey 20:54
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Transcribed by https://otter.ai