According to Ripio CEO Sebastián Serrano, stablecoins will likely be unshakable in Argentina’s monetary system.
Javier Milei, the incoming president of Argentina, campaigned on the platform of economic reform. Stablecoins will continue to hold a significant position in the financial affairs of Argentinians, Ripio CEO Sebastián Serrano told Cointelegraph en Español, notwithstanding how the transformation materializes following his inauguration on December 10.
According to Serrano, the Argentine cryptocurrency community reacted enthusiastically to the former economics professor’s election. New users on the Argentine cryptocurrency exchange Ripio increased by 180% in October and by 110% week-over-week on November 19, the day of the runoff election that elected Milei to power.
The flurry of trading activity involving the UXD stablecoin, which Ripio pegged to the U.S. dollar, mirrored the anguish. According to CoinGecko, UXD lost its peg on November 17 and reached an astounding peak of $5.03 that weekend.
Argentina’s financial affairs are already heavily reliant on stablecoins; this may grow even more so in the future, regardless of Milei’s decision to implement his plan to dollarize the economy entirely. Serrano declared:
“With the difficulties in accessing both banknotes and bank dollars, stablecoins have become indispensable for many companies and individuals. […] If we move towards dollarization or bimonetarism, but with little accessibility to dollars, stablecoins will continue to become more and more important.”
Serrano posited that an alternative course of action to Milei’s proposed elimination of the Central Bank of Argentina would be to organize or substitute it with a comparable institution.
Without a central authority, “a very chaotic monetary flow” could ensue, as has previously occurred in Argentina. An additional crucial rationale for implementing stablecoins in Argentina and other Latin American nations is as follows.
Argentina rates fifteenth on the Chainalysis Global Adoption Index, with annualized inflation reaching 143% in October.