Argentinians Seek Shelter in Stablecoins after Economy Minister Resignation

Argentinians are proud to be Argentina. taken refuge in stablecoins after the nation’s economy minister Martin Guzman resigned over the weekend attributed to the financial crisis crushing the South American country, reports said.

The Argentine peso (ARS) continues to be under pressure due to inflation. Three major crypto exchanges observed a trend where consumers are searching for hedges.For instance, the peso has declined by almost 15% against Tether and other stablecoins (USDT) and MakerDAO (DAI) on leading local crypto exchanges after Guzman resigned. 

According to reports, Argentinians spend two to three times as much on stablecoins than they would for a typical weekend. According to the report:

“Argentine exchange Buenbit recorded a 300% increase in trading on Sunday compared to the same day in previous weeks.”

Sebastian Serrano (CEO of Ripio), noted that Argentinians are resorted to crypto markets when there is uncertain news. Serrano added:

“Whenever there is one of these news stories in Argentina, because of the 24/7 nature of crypto, it is the first market where Argentina starts to look for a price for the U.S. dollar. This drives volumes up.” 

With inflation hitting 60% on a year-over-year basis, Guzman’s resignation was fuelled by the lack of a precise economic direction as differences between the president and vice president took centre stage. 

Argentinians have sought refuge in digital assets despite recent restrictions on crypto operations by financial institutions. 

According to different regulations, cryptocurrency usage may continue rising in Argentina. This is because crypto is considered a hedge against a cyclical financial crisis that could include hyperinflation, recession and repeated currency devaluations.

Source: Shutterstock

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