In the wake of political and economic uncertainty, Argentina Turns to Stablecoins

October 18, 2022

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In the wake of political and economic uncertainty, Argentina Turns to Stablecoins

Amid the recent uncertainty caused by the resignation of some key members of the government, citizens of Argentina are using stable currencies to protect their savings. Late last week, the country’s economy minister resigned along with other figures, sparking chaos that saw the price of the country’s stable currency jump up to 11 percent in some exchanges. The exchange rate at which Argentine citizens exchange their native currency, the Argentine peso, for dollars has decreased due to the political and economic uncertainty that the country is currently facing. The resignation of Economy Minister Martin Guzmán was a shock, as he was one of the strongest supporters of the agreement the country signed with the International Monetary Fund (IMF) to restructure its debt.

According to Bloomberg, this exchange rate reached 257 Argentine pesos in the financial exchange, which represents an increase of 6.6 percent. In the Cash Lemon exchange, the price increased by 11% to 279 pesos. Argentines rushed to exchange their pesos for foreign currencies such as the U.S. dollar and dollar-denominated currencies such as USDT. Even with the appointment of a new Minister of Economy, Silvina Patakis, the market has not returned to its previous pace. According to local media, the exchange rate fell to 280 pesos to the dollar and reached 300 pesos to the dollar at some exchanges.

In addition, the volume of trading stable currencies has increased significantly. Some operators have announced a growth of 500 percent on the weekend, and most traders are trying to expect traditional markets to use arbitration. The digital dollar exchange rate shows that Argentina prefers to buy these changes as they repeat in other products and for the various programs they buy compared to the dollar accounts. The moves follow a survey conducted by Americas Markets Intelligence in April, which found that 12 percent of people have invested in digital currencies and 18 percent are interested in investing in digital currencies.

Read more: Due to financial difficulties, the cryptocurrency exchange Vauld suspends withdrawals, trading, and deposits.

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