Stablecoins become a hedge against inflation after the resignation of the Finance Minister in Argentina
Stablecoin a Hedge
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Stablecoins become a hedge against inflation after the resignation of the Finance Minister in Argentina
The crypto winter is hitting each country differently. Some are losing hope in cryptocurrency, while others see it as a means of survival. And the same is true in Argentina, which has seen a rise in crypto usage. According to recent data, stablecoins topped the list with regard to new adoption rates. The price of the Tether stablecoin USDT surged over the weekend following the resignation of Economy Minister Martin Guzman.
The resignation marked the biggest departure from the administration of Alberto Fernández. After this the tussle between the ruling coalition intensified. There was no immediate announcement of a replacement. Argentina has been fighting for some time now against rising inflation and continued depreciation of the peso versus the US dollar. For many citizens, moving to stablecoins remains the only solution.
Over the weekend and on Monday, the price of dollar-based stablecoins rose on exchanges in Argentina, spreading to exchanges around the world. The resignation of the finance minister, announced with a seven-page letter on his Twitter feed on July 3, may further expose an ailing economy already suffering from high inflation and a falling currency. According to Chainalysis, Argentina is one of the global leaders in cryptocurrency adoption. More than 50% of its population has cryptocurrencies.
The organization is a site that focuses on cryptocurrency and blockchain technology. According to a survey by Wonderman Thompson in Argentina, two-thirds of Argentines who invest in crypto do so to protect their money. The adoption rate in Argentina is the sixth highest in the world, with Statista estimating that around 21% of Argentines will use or own cryptocurrencies by 2021.
The recent acceptance of stablecoins will undoubtedly contribute to this figure. In addition to bitcoin, Argentines increasingly use stablecoins to hold their dollars in the United States. According to reports, the use of crypto in Argentina had increased to 12% by May 2022. This is more than twice that of Peru, Mexico and other regional nations. Citizens are eager to protect themselves against rapidly rising prices, which drive up adoption rates.
Crypto winter, Cryptocurrency Adoption, Stablecoin, Crypto in Argentina, Blockchain Technology, Crypto Usage, US Dollar, USDT