Argentines turn to stablecoins amid falling peso and electoral uncertainty
- Stablecoins gain momentum with the devaluation of the Argentine peso
- Crypto arbitrage offers up to 4% profit per trade
- Cryptocurrency usage grows ahead of legislative elections
With the October 26 legislative elections approaching and the continued decline of the Argentine peso, the use of stablecoins and cryptocurrency arbitrage strategies has skyrocketed in the country. Since the beginning of October, the peso has lost more than 4% against the US dollar, leading many Argentines to seek refuge in digital assets as a way to protect their purchasing power.
According to Bloomberg , investors are taking advantage of the difference between the official and parallel exchange rates to profit through the so-called "rulo," a practice that involves buying stablecoins with dollars and reselling them for pesos at a rate about 7% below the official rate. This operation can generate returns of up to 4% per transaction, making it a popular alternative amid restrictions imposed by the Central Bank of Argentina.
Since October 1st, the government has banned citizens from reselling dollars for 90 days, further boosting the crypto market. Ripio exchange reported a 40% increase in stablecoin transactions in the week following the measure, while Lemon Cash reported a more than 50% increase in trading volume.
Julián Colombo, Bitso's manager in Argentina, explained that stablecoins "act as a vehicle for obtaining cheaper dollars." He noted that, because they are still in the regulatory process, the government "doesn't know how to control the liquidity" of these assets, allowing the market to grow without significant restrictions.
Although President Javier Milei has reduced inflation from nearly 300% to 30% since the end of 2023, concerns about the peso's devaluation and dwindling reserves remain. Throughout October, the central bank sold approximately $1,3 billion in dollars to contain exchange rate pressure.
Argentina maintains an increasingly open stance toward cryptocurrencies, with companies like Binance and Coinbase licensed to operate in the country. For many Argentines, stablecoins like USDT and USDC have become a way to preserve value. "Stablecoins are here to stay," said López, a local stockbroker, noting that "the dollar remains the true refuge in Argentines' daily lives."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hayes' Influence on DeFi Liquidity Fluctuations Drives Market Sentiment and Fuels Discussion
- Arthur Hayes, ex-BitMEX CEO, intensifies DeFi activity via strategic ENA , PENDLE, and ETHFI transactions, shaping liquidity dynamics. - On-chain analytics reveal $1.42M diversified portfolio acquisitions from Cumberland , reflecting risk management in yield-generating assets. - High-profile trades, including $245K ENA purchase post-$1.38M liquidation, influence short-term price volatility and market sentiment. - Analysts view Hayes' movements as a DeFi confidence barometer, though caution against overin

Bitcoin Updates Today: Technical Optimism and Institutional Interest Face Off Against Broader Economic Challenges
- Bitcoin hovers near key Fibonacci support amid volatility, with technical indicators showing neutral RSI and bullish MACD but bearish EMA resistance. - Nasdaq proposes raising IBIT options limits to 1M contracts, signaling institutional confidence as BlackRock's ETF gains traction and holders turn profitable. - Krugman links Bitcoin's 30% drop to waning Trump support, contrasting technical optimism while Tom Lee revises $250k target to cautious $100k threshold. - XRP stagnates below $2.30 despite UAE reg

Textbook Liquidation: Monero Whale Faces $1.9M Loss in Leverage Trade
- A Monero whale's 3× leveraged $5.6M long position was liquidated at $0.02298, resulting in a $1.9M loss amid volatile price swings. - The trader initially gained $654K as MON surged but faced rapid reversal, highlighting risks of overleveraging in low-liquidity altcoins. - Analysts warn such high-risk strategies amplify both gains and losses, with liquidation margins often razor-thin in speculative crypto markets. - The event sparked mixed market reactions, with some viewing it as a cautionary tale while

Bitcoin News Today: BlackRock's ETFs: Institutional Embrace of Bitcoin Drives $245 Million in Revenue
- BlackRock's Bitcoin ETF (IBIT) drove $42.8M inflows on Nov 27, stabilizing BTC's $90K rebound amid macroeconomic uncertainty. - ETFs now hold 3% of Bitcoin's supply and $18.88B in ETH assets, shifting institutional focus from speculation to long-term accumulation. - Grayscale's Zcash ETF filing highlights growing altcoin demand, with ZEC surging 500% in two months amid privacy token trends. - Nasdaq's proposed IBIT options expansion to 1M contracts would align the ETF with major benchmarks like SPY, refl

