{"id":31439,"date":"2022-07-04T02:15:17","date_gmt":"2022-07-04T06:15:17","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=31439"},"modified":"2022-07-04T02:15:22","modified_gmt":"2022-07-04T06:15:22","slug":"usd-stablecoin-premium-increases-in-argentina","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/usd-stablecoin-premium-increases-in-argentina\/","title":{"rendered":"USD Stablecoin Premium Increases In Argentina"},"content":{"rendered":"\n
Argentina has been struggling for a long time with inflation and a currency that keeps losing value against the U.S. dollar.<\/h5>\n\n\n\n
\n
\"\"<\/figure>\n<\/figure>\n\n\n\n

Argentina, which has one of the world's highest crypto adoption rates, saw the price of dollar-pegged stablecoins skyrocket across exchanges on Saturday following the surprise resignation of its Economy Minister, Martin Guzman.<\/p>\n\n\n\n

The minister's surprise departure, disclosed\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> on his Twitter account on July 3 via a seven-page letter, threatens to further destabilize an already troubled economy grappling with high inflation and a falling national currency.<\/p>\n\n\n\n

According to Criptoya<\/use><\/svg><\/span><\/a> data, the cost of purchasing Tether (USDT<\/a>) in Argentine pesos (ARS) via the Binance exchange is currently 271.4 ARS, a 12 percent premium from before the resignation announcement and a 116.25 percent premium compared to the current fiat exchange rate of USD\/ARS.<\/p>\n\n\n\n

Other USD-pegged stablecoins, such as Dai (DAI<\/a>), Binance USD (BUSD<\/a>), Pax Dollar (USDP), and Dollar on Chain (DOC) have seen a similar increase, according to the local crypto price tracking website.<\/p>\n\n\n\n

Argentines are flocking to cryptocurrency as a hedge against growing inflation and the continuous depreciation of the Argentine peso versus the US dollar.<\/p>\n\n\n\n

In 2016, before inflation took its toll, one USD could only buy about 14.72 Argentine pesos. Six years later, however, one USD can buy as much as 125.5 ARS.<\/p>\n\n\n\n

The additional premium on US-dollar pegged stablecoins is the result of a law enacted on September 1, 2019, known as Decree No. 609\/2019, which makes it nearly impossible for Argentinians to exchange more than $200 in greenbacks per month at the official exchange rate.<\/p>\n\n\n\n

It was enforced to keep the Argentine peso from plummeting amid a failing economy.<\/p>\n\n\n\n

According to Trading Economics, the annual inflation rate in Argentina increased for the fourth consecutive month in May, reaching 60.7 percent.<\/p>\n\n\n\n

According to Statista, the South American country has the sixth-highest adoption rate in the world, with over 21% of Argentineans expected to have used or owned cryptocurrency by 2021.<\/p>\n\n\n\n

It could be recalled that in May, crypto adoption in Argentina reached 12%, double that of Peru, Mexico, and other nations in the area, owing mostly to citizens seeking a haven from growing inflation.<\/p>\n\n\n\n

In addition to Bitcoin, Argentinians are increasingly turning to stablecoins as a means of keeping value in US dollars.<\/p>\n","protected":false},"excerpt":{"rendered":"

Argentina has been struggling for a long time with inflation and a currency that keeps losing value against the U.S. dollar. Argentina, which has one of the world’s highest crypto adoption rates, saw the price of dollar-pegged stablecoins skyrocket across exchanges on Saturday following the surprise resignation of its Economy Minister, Martin Guzman. The minister’s […]<\/p>\n","protected":false},"author":33,"featured_media":31441,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,81],"tags":[],"class_list":["post-31439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-altcoin-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/07\/20200901_Argentina_Stablecoin-Daily.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=31439"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31439\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/31441"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=31439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=31439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=31439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}