Argentinians have found refuge in Stablecoins as the South American country continued to face financial crisis. Economy minister, Martin Guzman resigned over the weekend attributed to the financial crisis crushing the nation.
The continuous inflation in the country is causing a devaluation of the national currency, the Argentine peso (ARS). According to reports, trends from three crypto exchanges in Argentina has seen customers turning to stablecoins.
Consumers are looking for hedges, for instance, the peso depreciated by nearly 15% against various stablecoins like Tether (USDT) and MakerDAO (DAI) on leading local crypto exchanges after Guzman resigned.
Therefore, according to reports, Argentinians purchase stablecoins two to three times more than is the case on a typical weekend. The report reads, ‘‘Argentine exchange Buenbit recorded a 300% increase in trading on Sunday compared to the same day in previous weeks.”
Argentinians have now been seeking shelter in digital assets despite the nation recently halting crypto operations undertaken by financial institutions.
Depending on different regulations, crypto usage is speculated to continue rising in Argentina because cryptocurrency is deemed a hedge against a cyclical economic crisis that includes hyperinflation, recession, and repeated currency devaluations.