The Sharp Devaluation of the Argentine Peso
– The Argentine Peso has lost about 60% of its value in a year, leading to inflation and threatening the purchasing power of the population.
– The currency has been losing value against the dollar for decades, with a 98% decrease since 2013 and a 53% decrease in the last 12 months.
– The recent downward trend has accelerated, with a 41% loss against the US dollar since the beginning of the year and over 20% in the last week alone.
Stablecoin: A Solution for Inflation in Argentina
– Argentines are turning to cryptographic stablecoins with their value pegged to the US dollar to cope with the situation.
– Cryptocurrency volumes moved in Argentina have increased by up to 500%, with USDT being the most traded stablecoin.
– Stablecoins are preferred over physical dollars due to their immediate availability in online markets.
– The demand for stablecoins has spiked, leading to wholesale purchases and higher prices in the Argentine crypto markets.
Javier Miller: Argentina’s Pro-Bitcoin Presidential Candidate
– Javier Miller, a proponent of Bitcoin and stablecoins, won the primary election and may push for their accelerated adoption if elected as president.
– He aims to dollarize the country to eliminate inflation and has been a professor of economics for over 21 years.
– If Miller wins the presidential election, the stablecoin market could become more popular and streamline payments and exchanges in Argentina.
Hot Take
The sharp devaluation of the Argentine Peso has led to increased adoption of stablecoins in Argentina. With the country’s presidential candidate, Javier Miller, supporting the use of stablecoins, their popularity may continue to rise. Stablecoins offer a solution to inflation and the devaluation of the local currency, providing immediate availability and stability. If Miller wins the election, the use of stablecoins could become the norm in Argentina, improving transnational payments and online business marketplaces.
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