[Proposal to change parameter] Add Terra {IDR, PHP} stable coins

TL;DR

This discussion serves to get the community’s thoughts as a follow-up to Proposal 27 which aims to add/enable Terra IDR and Terra PHP. If this looks good, then a parameter change will be submitted via the Governance feature of Terra Station.

Following the passed vote of Proposal 37 to add Terra IDR and Terra PHP stable coins [1], this proposal aims to make a parameter-change to add Terra IDR and Terra PHP stable coins. For both stable coins, tobin-taxes will be set at 0.75% as the USD-IDR [2] and the USD-PHP [3] bid-ask spreads are 1% or higher.

#indonesiaku #parasabayan


Background and Motivation

For Terra IDR

  1. Existing usage: Proven crypto adoption with 2 million registered crypto investors with further potential to grow into the total population of 270 million [4]
  2. Growing opportunity: Opportunity for DeFi natives with 181 million adult population but only 89 million (49%) are banked [5]
  3. Growing opportunity: Total Addressable Market opportunity in the internet economy alone is expected to grow to 124 USD billion by 2025 [6]
  4. Growing opportunity: Recent $6M Series A funding for Pintu, an Indonesian crypto exchange, with investors including Pantera and Coinbase Ventures [13]
  5. Government acceptance: Government regulation approves the trading of crypto assets [7]
  6. Large fiat market: IDR is the #23 top fiat currency by market capitalization [12]

For Terra PHP

  1. Proven usage: Proven crypto adoption with estimates ranging between 17% to 20% ownership in a total population of 110 million [4], [8]
  2. Proven usage: Beyond investing, use cases include remittances and NFTs [9], and it is important to note that remittances make up about 9% of the Philippines GDP [10]
  3. Growing opportunity: Opportunity for DeFi natives with 67 million adult population but only 23 million (34%) are banked [5]
  4. Growing opportunity: Total Addressable Market opportunity in the internet economy alone is expected to grow to 28 USD billion by 2025 [6]
  5. Government acceptance: Government regulation approves the trading of crypto assets [11]
  6. Large fiat market: PHP is the #32 top fiat currency by market capitalization [12]

Notes:

[1] Terra Station Proposal 37
[2] Bank Indonesia Foreign Exchange Rates for Apr-09; set Access Data field to “Daily” and Currencies to “USD” then press Search
[3] Development Bank of the Philippines Foreign Exchange Rates for Apr-08
[4] Asia’s Crypto Landscape by Mira Christanto from Messari
[5] e-Conomy SEA 2019 by Google, Temasek and Bain & Company
[6] e-Conomy SEAS 2020 by Google, Temasek and Bain & Company
[7] Asosiasi Blockchain (Indonesia’s Blockchain Association)
[8] How Common is Crypto?by Katharina Buchholz from Statista
[9] NFTs Are Becoming a Major Source of Income for Crypto Newbies in the Philippines to Colombia by Dan Kahan from The Defiant
[10] World Bank Remittance as Percentage of GDP
[11] Cryptocurrency to become mainstream in the Philippines | Digital Payments | Fintech Magazine by Joanna England of FinTech Magazine
[12] Top Fiat Currencies by Market Capitalization as of Jun-05-2021
[13] Indonesian crypto exchange Pintu gets $6M Series A by Catherine Shu of Tech Crunch


Acknowledgment:

[A1] Thank you to Tanwa Arpornthip for providing guidance on proposal writing in Terra Station and also on how to make a parameter-change via Agora and Github.
[A2] Thank you to Do Kwon and Tanwa Arpornthip for providing guidance on parameter-change changes in Terra Station and Terra Station.


About the Proposal Author:

LUNAtic :waning_gibbous_moon: with roots from and living in Southeast Asia.

1 Like

Yea, would love to see these currencies added onto Terra. I think it will send a strong message that Terra is targeting global adoption.

Thanks for a well researched proposal!

1 Like

I agree! More stable coins will lead to more grown for terra economy.