🚀 Stablecoins Gain Momentum in Argentina

posted  12 Feb 2024
Photo - Stablecoins Gain Momentum in Argentina
In the face of escalating inflation (211%), Argentinians continue to actively purchase dollar-pegged stablecoins, steering clear of Bitcoin due to its high volatility. For cash purchases of these stable tokens, locals are turning to domestic P2P exchanges due to the country's stringent currency regulations.

These exchange points are often hidden, operating on an appointment-only basis. The black market exchange rate significantly outperforms the official rate, making stablecoins an increasingly popular option for safeguarding assets, especially since holding US dollars in bank accounts is prohibited.

In late November, Javier Milei was elected President of Argentina, championing the dollarization of the economy and the adoption of cryptocurrencies, notably Bitcoin. However, his administration has shown limited initiative in this area, recently delaying the introduction of legislation that would legalize cryptocurrency income with a 5% tax.