To protect the value of their money and prevent excessive inflation, Argentinians are reportedly accumulating USDT at an increasing rate.
According to reports, Argentines are becoming interested in cryptocurrency. According to the study, they “aren’t playing the meme coin lottery or trying to get rich off the next token that is on the cusp of taking off.” Instead, it expressed that they “ordinarily purchase and hold USDT.”
Hoarding USDT: Argentina Turns to Stablecoins
Maximiliano Hinz, head of Bitget’s Latin American operations, was quoted by the media outlet as saying:
“Argentina is an unordinary advertise where numerous individuals purchase USDT, and it doesn’t go past that. We don’t see this anywhere else. People in Argentina buy a tether with cash and leave it in their wallets. They do nothing with it.”
Forbes analysis found that Argentina has the highest rate of crypto adoption in the Western Hemisphere, with a 276% inflation rate. But the use of trusted exchanges is not so high. (Edited)
Forbes (@Forbes)
Traders in different parts of the world frequently use USDT to purchase another currency, such as Bitcoin (BTC).
However, specialists concurred that people living in Argentina “rarely use USDT to speculate, trade it, or swap it for other types of cryptocurrencies.”
Since Argentina’s economy suffers from hyperinflation, the government has already imposed limits on the purchase of foreign currency.
According to the news source, USDT appears to be “the ideal way to escape Argentina’s inflationary problems” for many.
However, purchasing USDT “carries its own risks,” as Buenos Aires “has created none regulations to control this wild industry,” the statement said.
According to the media site, stablecoins pegged to the US dollar are “in line with the concept” of dollarization.
Bitcoin-aware President Javier Milei aims to replace the fiat peso with the dollar and dollars of Argentina’s economy.
However, the report’s authors noted that despite recent legal changes, Argentina still “does not provide significant regulation or safeguards for cryptocurrency users.”
According to recent Chainalysis data, Argentina is “leading Latin America in gross crypto transaction volume,” with an estimated $85.4 billion in transactions by July 2023.
According to the media site, Argentinians are also avid users of some of the largest cryptocurrency exchanges around the world.
According to data from SimilarWeb, the 55 largest cryptocurrency platforms worldwide received 130 million visits, and 2.5 million of them were from Argentina.
