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Citizens of Argentina secure their savings by using stable coins in the midst of the recent climate of uncertainty created by the withdrawal of certain key members of the government. The country’s Minister of Economy withdrew last weekend, along with other personalities, and created the unrest that led to the price of stable coins in the country rising by 11% on some stock exchanges.
The exchange rate used by the people of Argentina to exchange the native fiat currency, the Argentine peso, against the dollar, has plummeted due to the climate of political and economic uncertainty the country is facing. The departure of Economy Minister Martin Guzman caused shock waves, as he was one of the largest articulators of the agreement the country entered into with the International Monetary Fund (IMF) to restructure the country’s debt with the organization.
Guzman’s resignation also led to dismissals by other key officials in the ministry, including Ramiro Tosi, Roberto Arias and Rodrigo Ruete. This meant that the exchange rate of pesos for US dollars reached record numbers on various cryptocurrency exchanges. According to Bloomberg, the price reached 257 Argentine pesos on the Binance Stock Exchange, an increase of 6.6%. On the Lemon Cash exchange, prices rose 11% to 279 pesos.
The situation has led Argentines to rush to exchange their pesos for foreign currency such as the US dollar and also for dollar-denominated stack coins such as the USDT. Even with the appointment of a new finance minister, Silvina Batakis, the market did not return to its previous courses. According to local media, the price fell even lower to 280 pesos per dollar, and even reached 300 pesos per dollar on some exchanges.
Furthermore, the volumes of stable coins increased significantly. Some operators reported 500% increases in volumes traded over the course of a few hours over the weekend, with most traders trying to anticipate the increase in traditional markets to take advantage of arbitrage opportunities.
The exchange rate of the digital dollar went over the exchange rate of the physical dollar, and showed that Argentines prefer to buy these variants because of the ease of trading them again for other goods and also for the different uses they can afford compared to dollar bills. The movements are in line with a survey conducted by Americas Markets Intelligence in April, which found that 12% of the population had invested in crypto, and 18% were interested in investing in crypto.
What do you think about the recent increase in demand and price of more stack coins in Argentina? Tell us in the comments section below.
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