The South American nation was already struggling with high inflation and significant monetary instability, but things only got worse after Martin Guzman, the minister of economy, resigned. In the midst of the chaos in the economy, Argentinians have increased their interest in stablecoins and cryptocurrencies, and many exchanges, including Binance, have reported that the cost of purchasing Tether using the peso has skyrocketed.
The past few years have not been the best for one of the largest South American nations. The country was among the top 10 richest per capita during the first half of the 20th century, but things are much worse now. Argentina experienced high rates of inflation due to inefficient production, massive foreign debt, and dictatorship regimes; the COVID pandemic and current global unrest only made matters worse.
Martin Guzman was appointed minister of economy by the government in 2019. During his tenure, he was able to lower the nation’s foreign debt, but the citizens had trouble getting bonuses and food cards. Guzman resigned as a result of the country’s inflation rates skyrocketing to over 60% and the diesel fuel shortages. However, the data from CryptoYa showed that the price of USDT measured in ARS spiked on a few exchanges, despite some people in the country turning their attention to cryptocurrencies and stablecoins.
It is important to note that Argentina, which ranked 10th, is among the nations with the highest rate of cryptocurrency adoption, surpassing Brazil, Russia, China, and South Africa. Turkey is a country that is struggling with inflation. The Turkish Lira crashed and is currently unable to recover to its previous levels. Turks turned to Bitcoin (BTC) and Tether as a solution because they let users purchase the closest available alternative to the dollar on the blockchain.
It makes sense that before dealing with cryptocurrency, locals would turn to gold, the most significant and widely used investment instrument in the nation, but the government also urged the populace to sell their precious metal holdings and support the economy.
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