- El Salvador the center of cryptocurrency development.
- AABBG tokens pegged from the gold mines owned and operated by Asia Broadband.
Traditional financial systems had been operating smoothly for centuries when the advent of cryptos and blockchains showed us the serious issues they face. As a response to these issues came our contemporary decentralized financial (DeFi) system built on blockchains and powered by cryptocurrencies. DeFi promised to bring a paradigm shift toward a better, more people-centric, and inclusive financial system.
Although relatively new, DeFi and cryptos’ numerous use-cases and low barriers to entry are pushing companies and even countries to jump onto the crypto bandwagon.
Leading this movement on a national scale is El Salvador. In the world’s first, the small Central American country El Salvador passed a bill to adopt Bitcoin as its co-legal tender alongside the U.S. dollar. Salvadorans can now use Bitcoin to pay their taxes and debts and they can use BTC to denote the prices of goods and services.
This sudden move by the Salvadoran government garnered eyeballs from across the globe. While some hailed the idea, others criticized the move. There are also those who saw this as an opportunity to push forward the adoption of cryptocurrencies.
Among the opportunity-seekers is the Nevada-based firm Asia Broadband. In a recent development, the firm revealed its plans to use El Salvador as a springboard for the expansion of its AABBG token.
Asia Broadband’s Chemistry with Crypto and El Salvador
Asia Broadband, Inc. (OTC: AABB) is a world-renowned resource company focused on the production, supply, and sale of precious metals to Asian countries. The company is long known for the vertical integration approach it uses to provide value to its investors. This 26-year-old company hit its all-time high of $16.8M in profit in 2020 and $100M in assets in the first quarter of 2021.
In March 2021, however, Asia Broadband took its big plunge into crypto by launching its Ethereum-based AABBG token. It took less than two weeks for the firm to sell $1M worth of its tokens, whose price is pegged to the spot price of gold, which gives it the unique quality of being flexible and transparent like other ERC-20 tokens while still maintaining stability.
The gold pegged to the AABBG tokens comes from the gold mines owned and operated by Asia Broadband itself, along with $30M worth of physical gold. With AABBG, Asia Broadband targets investors who want to venture into the crypto space but are held back by its volatility.
The gold market is less volatile as compared to the crypto space and can offer a sense of stability to investors of AABBG. The token’s value could also rise significantly as a function of increasing gold prices.
Now that Asia Broadband has its own crypto token and El Salvador has opened its arms to Bitcoin — and obviously other cryptos — the company plans to tap into this first national financial system powered by crypto.
Where 70% of Salvadorans still do not own a bank account, crypto presents an opportunity to offer all financial services with just a smartphone. Realizing the opportunity here, Asia Broadband has devised plans for Central American expansion centered around El Salvador. The company plans to target Salvadoran retailers who could potentially use AABBG to receive and process payments from across the globe.
The firm plans to establish a satellite office that would eventually become its Central and South American hub. Asia Broadband is also working on developing a Latin version of the AABB wallet for Latin American users.
Cryptocurrencies have become the hottest trend in our world today. Even when the pandemic wreaked havoc in the traditional financial markets, cryptocurrencies were booming big time and hitting their all-time highs.
This only goes to say that they have tremendous potential. However, the one thing that still puts people off is the volatility in the market. With asset-backed cryptocurrencies like AABBG, we could solve this dilemma and encourage more people to join the crypto economy. And, with its progressive moves, El Salvador could become the center around which all this development unfolds.