{"id":51343,"date":"2023-08-21T22:08:25","date_gmt":"2023-08-22T02:08:25","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/stablecoin-buying-rises-in-argentina-as-fiat-falls\/"},"modified":"2023-08-21T22:08:28","modified_gmt":"2023-08-22T02:08:28","slug":"stablecoin-buying-rises-in-argentina-as-fiat-falls","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=51343","title":{"rendered":"Stablecoin Buying Rises in Argentina as Fiat Falls"},"content":{"rendered":"
\n

Industry insiders claim Argentina is experiencing a rise in stablecoin buying as black market dollar market prices spiral upward.<\/p>\n

Per Globo, the nation is in the grips of the \u201cworst political crisis in 21 years,\u201d with hyperinflation eating up the value of the fiat peso.<\/p>\n

<\/oembed><\/figure>\n

Last week, Bloomberg reported:<\/p>\n

\n

\u201cThe official [dollar exchange] rate is 287 pesos per dollar, while the black market trades at about 600 pesos on the streets of Buenos Aires.\u201d<\/p>\n<\/blockquote>\n

The government has capped foreign currency buying at $200 a month per person since 2019, a factor that has led many savers to the black markets.<\/p>\n

But with dollar bills in short supply in Argentina, some have instead turned to USD-pegged stablecoins.<\/p>\n

Globo quoted Sebastian Serrano, the founder of the Brazilian crypto trading platform Ripio, as stating that the firm\u2019s own dollar-pegged token was \u201ctrading at 726 pesos on Friday, August 18.\u201d<\/p>\n

That figure is \u201c5.3% less\u201d than some Argentine citizens were paying for the so-called \u201cblue dollar,\u201d the nation\u2019s unofficial black market exchange rate on the same day.<\/p>\n

The media outlet added that Argentines tend to use stablecoins to protect the value of their savings, rather than as a tool for making payments.<\/p>\n

But Globo also reported that some citizens use the coins to \u201cbuy airline tickets\u201d and pay for \u201cshipments.\u201d<\/p>\n

And, it noted, many people who \u201cwork remotely for foreign companies are paid in crypto.\u201d<\/p>\n

Indeed, more freelancers in the country than ever before are reportedly asking employers to pay them in crypto, rather than fiat.<\/p>\n

Serrano claimed that demand for Ripio\u2019s USD-pegged coin has \u201cincreased x4\u201d since the presidential primary elections earlier this month.<\/p>\n

The primaries saw the Libertad Avanza candidate Javier Milei scoop almost 33% of the vote, making him the frontrunner for the elections.<\/p>\n

<\/oembed><\/figure>\n

Stablecoins & Other Coins on the Rise in Argentina?<\/h2>\n

Milei has spoken in glowing terms about Bitcoin (BTC) in the past, and has other ties to crypto \u2013 although he favors a policy of dollarization.<\/p>\n

But Serrano claimed the rise in Milei\u2019s popularity has led many investors to the crypto markets.<\/p>\n

Serrano said that it was likely that Milei would take a \u201cmore favorable\u201d approach \u201cto cryptocurrencies than left-wing governments\u201d due to his \u201clibertarian approach to the private sector.\u201d<\/p>\n

The Ripio chief added that Milei would likely \u201cuphold users\u2019 rights to buy cryptoassets.\u201d<\/p>\n

But the Ripio executive added that he did not expect a Milei government to \u201cencourage the crypto industry, like Hong Kong or the United Arab Emirates, or to create a sovereign digital currency, as is the case in Brazil.\u201d<\/p>\n

And Serrano tempered social media claims centering on the likelihood of Milei becoming a \u201cBitcoin president\u201d like El Salvador\u2019s Nayib Bukele.<\/p>\n

<\/oembed><\/figure>\n

Serrano said:<\/p>\n

\n

\u201cMilei doesn\u2019t know about technology. He is not a bitcoiner and will not be like Bukele, who is passionate about cryptocurrencies.\u201d<\/p>\n<\/blockquote>\n

Some, including a member of Milei\u2019s own political faction, appear to disagree, with one claiming this month that Argentina was on the verge of becoming a \u201cBTC haven.\u201d<\/p>\n

And Serrano added that Milei\u2019s \u201cradical views\u201d expressed during his campaign \u201cwill have to give way\u201d to \u201cmore pragmatic\u201d sentiments\u201d camp in an eventual government because he will \u201cneed to build support.\u201d<\/p>\n

<\/oembed><\/figure>\n

Argentines will go to the polls to choose their next President on October 22.<\/p>\n<\/p><\/div>\n