HomeBitcoinArgentinians head to cryptocurrencies, a new crisis on the horizon ?

Argentinians head to cryptocurrencies, a new crisis on the horizon ?

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For decades, Argentina has suffered from severe inflation and currency volatility. Its difficulties appear to have become worse since Economy Minister Martin Guzman departed.

In the midst of economic upheaval and to maintain its history, Argentina has shown significant interest in stablecoins. Several cryptocurrency exchanges, including Binance and Lemon Cash, have reported large increases in the cost of purchasing Tether (USDT) in Argentine Pesos (ARS).

Stablecoins to the rescue of currency depreciation?

Argentina, a longtime economic powerhouse, has not been in the greatest of health in recent years. While the country was previously one of the ten richest in the world per capita, things have changed dramatically in the last 40 years.

Runaway inflation has been driven by inefficient production, autocratic governments, and a massive foreign debt. Indeed, Argentina has not had single-digit inflation in at least a decade. Global financial turmoil brought on by the COVID-19 epidemic, armed conflicts, and the energy crisis has naturally exacerbated the issue.

Martin Guzman was named Minister of Economy by the government in 2019. During his rule, he was successful in reducing Argentina’s public foreign debt. However, the country’s inflation rate rose to more than 60% in May. Simultaneously, diesel shortages and pressure from left-wing political forces forced his departure.

Due to the decline of the national currency, some Argentinians have switched to US dollar-pegged stablecoins.

It should be mentioned that Argentina is one of the countries with the greatest rate of cryptocurrency adoption. According to Chainalysis analysis, the country ranks tenth, surpassing China, Brazil, South Africa, and Russia.

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