đđđ In inflation-torn #argentina , locals use âcrypto cavesâ â and avoid Bitcoin
As inflation skyrockets in Argentina, residents are turning to clandestine peer-to-peer crypto exchanges, dubbed "crypto caves," to acquire U.S. dollar #Stablecoins . These covert platforms offer better exchange rates than official channels, providing a hedge against the plummeting value of the Argentine peso. Despite potential crackdowns by authorities, crypto caves remain crucial for locals navigating the country's economic turmoil.
Originating from the era of "financial caves," these underground exchanges emerged as a response to Argentina's currency controls in the 1980s. They facilitate transactions at the "blue dollar" rate, which significantly exceeds the official exchange rate.
Driven by Argentina's staggering 211.4% inflation rate in 2023, demand for stablecoins continues to rise. While the potential lifting of currency controls under President Javier Milei's leadership may impact their popularity, the persisting high tax pressure in Argentina is expected to sustain the demand for underground exchanges.
Similar clandestine exchanges exist in other economically challenged nations like Cuba, Venezuela, Iran, and various African countries.
Despite Argentina's recent move to legalize Bitcoin for contracts, concerns about its volatility persist, prompting a preference for stablecoins like #USDT on the Tron network. These stablecoins offer stability, fast transactions, low costs, and a fixed 1:1 parity with the U.S. dollar, eliminating the need for currency conversions during transactions.
Source - cointelegraph.com
