💰Argentina's stablecoin inflows lead Latin America, and may become the country's new favorite to fight inflation! 📈
Argentina has now surpassed Brazil to become the country with the largest stablecoin inflows in Latin America. According to the latest data from Chainalysis, from July 2023 to June 2024, the value of stablecoins flowing into Argentina exceeded US$91 billion, exceeding Brazil's estimated US$90 billion for the same period.
Currently, Argentina's stablecoin usage is 17% higher than the global average. The global average transaction volume is 44.7%, while Argentina has reached 61.8%, Brazil is 59.8%, Colombia is 66%, Mexico is 47.2%, and Venezuela is 56.4%. The reason for this situation is that these countries generally face serious inflation problems, so stablecoins are widely used as asset preservation tools in these regions.
Because in countries with high inflation rates, local currencies may depreciate by 15-30% in a year. Although the use of stablecoins such as USDT or USDC also faces 2-3% inflation of the US dollar, stablecoins still have considerable competitiveness compared with local currencies.
At the same time, Tether, the issuer of USDT stablecoin, said that they will focus on countries such as Argentina and Brazil, rather than developed regions such as Europe, America or Asia, because they believe that stablecoins can help those solve local inflation problems. In countries with severe inflation such as Argentina, Brazil and Venezuela, the growth rate of stablecoins is very fast.
On the other hand, for people living in economically stable countries and regions, they may not be able to fully feel the importance of stablecoins, but in some backward regions such as Africa and Central and South America, stablecoins are an important asset that changes people's living conditions.
So, can you imagine how difficult life will become for people who are unfortunately living in countries or regions where their national currencies depreciate by 5-10% per month? Fortunately, however, stablecoins can help them solve these serious problems to a certain extent!
💬Finally, if you live in a country with high inflation, would you choose to use stablecoins to protect your wealth? Do you think the popularity of stablecoins will shape the future global economy? What new opportunities and challenges will it bring?
