About MXNB
What is MXNB?
MXNB is the new stablecoin pegged to the Mexican peso, with 1:1 parity. The purpose of stablecoins is to maintain parity with the price of a certain fiat currency.
What backs the value of each MXNB?
Each MXNB token is backed by a Mexican peso. The total reserves in pesos backing the circulating supply of MXNB are held by different financial institutions in Mexico.
How is the 1:1 parity between MXN and MXNB maintained?
Parity is maintained through a strict collateralization process. In essence, for each unit of MXNB issued, an equivalent amount of fiat currency (MXN) is held in reserves. In the case where the amount of MXNB in circulation is likely to deviate from the value of the reserves, there are mechanisms in place to adjust the supply of MXNB to maintain parity.
Who is behind the token?
MXNB Co. is the issuer of MXNB tokens. It operates under the same model as the most trusted stablecoins, in which all tokens in circulation are 100% backed by fiat pesos in bank accounts within regulated financial institutions.
What networks are supported by MXNB?
At the moment, MXNB is only supported on the Ethereum Main Net as an ERC-20 token, but we hope to share news about more networks soon.
What can I do with MXNB on Bitso?
You can use the MXNB token as a deposit or withdrawal method via Ethereum. There will be an automatic conversion, and this operation will be reflected in your balance in Mexican pesos. For example, if you want to send 5 Mexican pesos through MXNB, your balance in pesos will be reduced by that amount.
Given that MXNB is a ERC-20 token, you can send or receive funds from any wallet or address compatible with the EVM (Ethereum Virtual Machine), that is, it is compatible with tokens native to the Ethereum network.
By using MXNB to send funds to decentralised wallets, you can use the token to interact with decentralised finance protocols. There, you can use your MXNB to exchange MXNB for other tokens (swaps), provide liquidity on decentralised exchanges and more.
Can I buy MXNB on Bitso?
For the time being, MXNB cannot be bought or sold within Bitso. However, you can use your balance in Mexican pesos directly through MXNB or deposit MXNB to increase your balance in Mexican pesos.
Why don't I see an MXNB balance?
We want to make interacting with MXNB easy. Therefore, you will see a single balance in your wallet: MXN. By having this balance, you will automatically have access to MXNB as a deposit or withdrawal method via Ethereum, without having to monitor two balances for assets with the same value.
Can I send funds to any wallet through MXNB?
Yes! As long as they are wallets within the Ethereum network or wallets supported by the EVM (Ethereum Virtual Machine) that take ERC-20 tokens. Always remember to verify that the network to which you are sending your funds accepts MXNB, as otherwise you could lose your tokens. At this time, the only network compatible with MXNB is Ethereum.
Can I send funds to my Bitso Web3 Wallet using MXNB?
Of course! To do this, you'll need to start by going to your Mexican pesos balance and selecting "withdraw". Choose the amount of MXN you wish to withdraw, paste the address of your Bitso Web3 Wallet, confirm the transaction, and you're done!
If you want to send funds from your standard Bitso wallet, Ethereum network gas fees will apply.
If you want to fund your Bitso Web3 wallet with funds you have in an external wallet where you have MXNB, you can also do this by pasting the address of your Web3 Wallet, which is on the home screen (in this case, gas commissions will apply).
If you have further questions about the Bitso Web3 Wallet, visit this page.
If I use my MXNB to send funds to an external Web3 wallet, do I have to pay gas fees?
Yes. Remember that gas fees are charges that are paid to process a transaction on each blockchain. In the case of MXNB, on the Ethereum network.
Gas fees are calculated at the moment you request a withdrawal to a Web3 wallet. Always remember to verify that you are sending your MXNB to an EVM-compatible address to avoid losing funds.
When making a withdrawal in MXNB, do I have to pay a fee for the conversion from MXN to MXNB?
While gas fees apply for transacting on the Ethereum network, no fees are charged for the 1:1 conversion from MXN to MXNB.
I received a deposit through MXNB, why don't I see it reflected as an asset in my wallet?
Remember that all deposits you receive through MXNB will be automatically converted and will be reflected as a credit (increase) in your Mexican pesos (MXN) balance. Alternatively, all withdrawals you make through MXNB will be reflected as a debit (decrease) on your MXN balance.
For any MXNB deposits or withdrawals, check the fiat limits on your account to make sure you don't exceed them. If you want to increase these limits, you can follow the steps shared here.
Why do fiat account limits apply to the use of MXNB?
Given that MXNB is automatically converted into MXN, which is a fiat currency, this new ramp shares limits with said fiat currency.
I'm not a Mexican user. Can I access MXNB?
At this time, only Mexican users can use MXNB to make deposits or withdrawals.
We hope to soon be able to expand access to MXNB to users in all our jurisdictions.
Why use MXNB for withdrawals?
MXNB is the gateway to decentralised finance. If you are looking to interact with decentralised protocols (e.g. a decentralised exchange like Uniswap), you will need to use a Web3 wallet, and Web3 wallets only accept cryptocurrencies, not fiat money. MXNB withdrawals are useful for that purpose.
For payments in the web 2 world, traditional economy and centralized finance, it is still not possible to use MXNB.
When sending funds to another wallet using MXNB, does the Travel Rule apply?
First, what is the Travel Rule? It is a regulatory measure enforced by the Gibraltar Financial Services Commission (GFSC) following the recommendations of The Financial Action Task Force (FATF). Under the Travel Rule, institutions are required to share information about their customers and the people to whom they are sending or from whom they are receiving funds when the transaction amount exceeds 1000 EUR.
Since Bitso is a GFSC regulated entity, we are obliged to comply with this regulation. Therefore, if the amount you want to send via MXNB exceeds 1000 EUR, you will need to share the following information:
The source address: whether it is an exchange or wallet.
In case it is an exchange, the name of the entity.
Ownership of the address: whether it's yours or belongs to another person.
If the address does not belong to you, you must also disclose the name of the beneficiary.
Bitso will share your name, your crypto wallet address, and your customer ID with the exchange to which you are sending the crypto amount
This information transaction is carried out through a specialized provider that complies with the highest standards of data security and privacy.
You can read more about the Travel Rule here.
DeFi + MXNB
What are decentralized finances, or DeFi?
Decentralised finance or DeFi is a financial ecosystem built on blockchain networks, where there are no central authorities acting as intermediaries between users. For that reason, users interact directly with each other to make transactions.
Transactions within DeFi are executed by smart contracts, which are basically pieces of code that set the terms of exchange for each type of financial service, such as loans, trading of virtual assets, insurance, among others.
What are dApps or decentralized apps?
dApps are digital applications or programs that exist and run on blockchains rather than on a single computer. Because they are decentralized, they are not under the control of a single authority.
How can I use my MXNB in DeFi (Web3)?
MXNB gives you the power to use your money in any way you want on DeFi. Some of the things you can explore:
Swap tokens on decentralized exchanges like Uniswap.
Use your MXNB to give loans to other people through protocols like Aave or Compound
And many more options available in Web3 applications!