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- On Saturday, July 2, 2022, The Argentinian Economy Minister, Martin Guzman, resigned from his post, and the price of dollar-pegged stablecoins surged across the exchanges.
- According to sources, this surge is not only shown in coins like USDT; this pattern is achieved in all the stablecoins pegged to the U.S. Dollar.
- According to public data, the Argentinian annual inflation rate has touched 60.7% for the fourth straight month!
Resignation, Inflation, Irritation
Argentina, yes, the nation of Tango, is struggling in a battle, which is a very long battle, to be honest, against the rising inflation and the depreciation of the value of Argentinian currency, the Peso against the U.S. Dollar.
On Saturday, July 2, 2022, The Argentinian Economy Minister, Martin Guzman, resigned from his post, and the price of dollar-pegged stablecoins surged across the exchanges.
The cost of buying Tether (USDT) using Argentinian pesos (ARS) is currently 271.4 ARS through the Binance exchange, which is around a 12% premium from before the resignation announcement, and a 116.25% premium compared to the current fiat exchange rate of USD/ARS.
According to sources, this surge is not only shown in coins like USDT; this pattern is achieved in all the stablecoins pegged to the U.S. Dollar.
These stablecoins coins include:
- Dai (DAI)
- Binance USD (BUSD)
- Pax Dollar (USDP)
- Dollar on Chain (DOC)
So, what Options Do Argentinians Have?
The most obvious reaction to it is, according to the citizens of the nation is:
“Let’s pile into crypto so we can hedge against the country’s rising inflation.”
This inflation is very dangerous for the economy, making the American Peso fall against the U.S. Dollar.
There was a time in 2016 when you had to pay 14.71 Argentinian pesos to buy 1 USD.
But since then, inflation has taken its move. Now, just six years later, which is practically nothing in the country’s timeframe of existence, you need 125.5 Argentinian Pesos to buy 1 USD.
According to public data, the Argentinian annual inflation rate has touched 60.7% for the fourth straight month!
This is one of the reasons that Argentina will be the sixth fastest and most massive adopter of cryptocurrencies in 2021.
Besides bitcoin, the most famous and trusted coin, the nation is turning towards stablecoins, which are gaining a lot of importance from communities worldwide.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
