Fun

Argentina Runs to Stablecoins Amidst Political and Economic Uncertainty

News Feed - 2022-07-06 01:07:48

Argentina Runs to Stablecoins Amidst Political and Economic Uncertainty


Citizens of Argentina are hedging their savings by using stablecoins amidst the recent climate of uncertainty created by the resignation of certain key members of the government. The minister of economy in the country resigned last weekend, alongside other personalities, creating the turmoil that prompted the price of stablecoins in the country to rise by 11% on some exchanges. Dollar-to-Peso Exchange Rate Plummets Due to Political Uncertainty in Argentina


The rate that citizens in Argentina use to exchange the native fiat currency, the Argentinian peso, for dollars, has plummeted due to the climate of political and economic uncertainty the country is currently facing. The resignation of economy minister Martin Guzman caused shockwaves, as he was one of the biggest articulators of the deal the country inked with the International Monetary Fund (IMF) to restructure the debt that the country has with the organization.


The resignation of Guzman also brought about demissions from other important officers of the ministry, including Ramiro Tosi, Roberto Arias, and Rodrigo Ruete. This made the exchange rate of pesos for U.S. dollars reach record numbers on different cryptocurrency exchanges. According to Bloomberg, the rate reached 257 Argentine pesos on the Binance exchange, a rise of 6.6%. On the Lemon Cash exchange, prices jumped 11% to 279 pesos. Inflation and Devaluation Driving Argentinians to Foreign Currencies and Crypto


The situation has caused Argentinians to rush to exchange their pesos for foreign currencies like the U.S. dollar and also for dollar-pegged stablecoins like USDT. Even with the appointment of a new economy minister, Silvina Batakis, the market did not recover to its previous rates. According to local media, the exchange rate fell even lower to 280 pesos per dollar, even reaching the 300 pesos per dollar mark on some exchanges.


Furthermore, the volumes of stablecoins traded increased significantly. Some operators reported increases of 500% in volumes traded during some hours of the weekend, with most traders trying to anticipate the rise in traditional markets to take advantage of the arbitrage opportunities.


The exchange rate of the digital dollar went over the exchange rate of the physical dollar, showing that Argentinians prefer to purchase these variants due to the simplicity of trading them again for other goods and also for the different uses they afford compared to dollar bills. The movements are consistent with a survey conducted by Americas Markets Intelligence in April, which found that 12% of the population have invested in crypto, and 18% were interested in investing in crypto. Tags in this story Argentina, Cryptocurrency, economy minister, Exchange rate, exchnage rate, Pesos, Stablecoins, USDT


What do you think about the recent rise in demand and price of several stablecoins in Argentina? Tell us in the comments section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. India Hikes Duty on Imported Gold, Seeking to Bring Down Trade Deficit ECONOMICS | 6 mins ago Euro Drops to 20-Year Low Against the US Dollar, Tapping $1.028 per Unit — Analyst Says Parity Is Imminent ECONOMICS | 16 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSingapore Considers Imposing New Restrictions on Crypto Trading Next articleCrypto Lender Nexo Moves Forward With Plan to Acquire Troubled Rival Vauld Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

News Feed

Turner Wright15 hours agoSam Bankman-Fried ordered ‘special privileges’ for Alameda account on FTX — Gary WangFTX’s former chief technology officer reportedly claimed in court that then-CEO Sam Bankman-Fried auth
Ethereum Mirrors Bitcoin 2017-2021 Pattern – $4,000 Is The Trigger Point
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bank of Russia Accelerates Schedule for Digital Ruble Project
Bank of Russia Accelerates Schedule for Digital Ruble Project The Central Bank of Russia continues to step up efforts to test and issue the digital ruble, with a roadmap for the fu
Crypto Fear and Greed Index Shows Market Sentiment Remains Fearful
Crypto Fear and Greed Index Shows Market Sentiment Remains Fearful After the Crypto Fear and Greed Index (CFGI) dropped to significant lows and pointed to “extreme fear
DeNations, a Blockchain-Powered Metaverse, Launches the First INO – Initial Nations Offering
DeNations, a Blockchain-Powered Metaverse, Launches the First INO - Initial Nations Offering PRESS RELEASE. Smatoos , which is already known in the blockchain in
New Study Says Number of Cryptocurrencies Now at 10,000 — Five Coins Account for 75% of Total Market Cap
New Study Says Number of Cryptocurrencies Now at 10,000 — Five Coins Account for 75% of Total Market Cap The number of known cryptocurrencies surged from 6,000 in July 2021 to 10
Virtual reality steps up as metaverse struggles to deliver
Victoria Kennedy8 hours agoVirtual reality steps up as metaverse struggles to deliverVirtual reality rises from the ashes of the metaverse and sets its trajectory toward being the next big thing in the cryptosphere.1265
Report: UAE Central Bank Implements Digital Currency Strategy
Report: UAE Central Bank Implements Digital Currency Strategy The central bank in the United Arab Emirates said it has started implementing its digital currency strategy with partn
Bitcoin drops below $54K as crypto liquidations near $665M
Jesse Coghlan5 hours agoBitcoin drops below $54K as crypto liquidations near $665MAround $222 million in long Bitcoin positions were liquidated in the past 24 hours, with the price of BTC hitting its lowest point since F
Ezra Reguerra19 minutes agoSecurity platforms warn about hidden phishing and wallet drainer linksCybersecurity professional Christian Seifert gave an example on how Discord"s measure against malicious links can be abused
Bitcoin, Ethereum Technical Analysis: BTC Consolidates Ahead of Big Week of Economic Data
Bitcoin, Ethereum Technical Analysis: BTC Consolidates Ahead of Big Week of Economic Data Bitcoin consolidated below the $24,000 level on Feb. 27, as cryptocurrency markets prepare
$20M bridged ETH returns to ZKasino multisig, raising hopes for a refund
Martin Young4 hours ago$20M bridged ETH returns to ZKasino multisig, raising hopes for a refundThe 6,021 wstETH recently moved back equates to around two-thirds of the amount that went missing in the exit scam.1042 Total