Next October 22 is a key day for Argentina and as has been seen in recent weeks, economic uncertainty can cause even more harmful effects on inflation and the purchasing power of millions of Argentines, as was experienced on the day. yesterday, with the dollar crossing 1,000 pesos.
Inflation, low reserves and general distrust led to the creation of more than 15 exchange rates against the dollar in recent times but with resolution 5430/2023, the Federal Administration of Public Revenues (AFIP) raised taxes to access the dollar with the use of debit and credit cards, raising the additional payment from 5% to 25%. In this way, the value of the solidarity dollar, card and Qatar is unified.
But what to do in these moments of uncertainty? Guillermo Escudero, VP of Argentina and Peru at CryptoMarket, says that the first thing is to diversify, that is, resort to different options to protect money. But he highlights that, among the alternatives most chosen by Argentines is the “crypto dollar”, that is, stable cryptocurrencies or stablecoins, anchored in parity to the US dollar price.
During the day on Tuesday, October 10, the pioneering exchange in Latam observed a 100% increase in funding. “We observed that of 100% of the investments in cryptocurrencies made by Argentine users yesterday, 70% were for USDT (digital dollar), 20% for btc and eth, while the remaining 10% was allocated between various altcoins. This diversification demonstrates not only the security of the crypto market, but also the variety of instruments for people to exercise their economic freedom by opting for the best alternatives based on the multiple realities that coexist in our society,” she adds.
Inflation, low reserves and general distrust led to the creation of more than 15 exchange rates against the dollar
These digital dollars, known as stablecoins or stable cryptocurrencies, are crypto assets whose price is linked to that of another asset. Although there are many varieties of cryptocurrencies of this type, the best known are those that maintain a 1:1 relationship with the US dollar, and that is why they are called crypto dollars, or digital dollars.
These currencies do not have stocks, and can even have a better price than the free dollar. “In addition, today they are the best alternative, because the MEP dollar has increased parking and has several restrictions for buyers, while stablecoins are marketed freely on platforms in which the user only has to create a user and fund from their bank account (CBU) or Mercado Pago (CVU)”.
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Escudero also recommends Argentines not to keep unused pesos. “In general, when people collect and pay their obligations at the beginning of the month, they use the surplus for daily expenses little by little. Since inflation close to 12% in September gives us just over 3% weekly, which implies that for every $100,000, about $3,000 of purchasing power would be lost every seven days,” he explains.
For this reason, Ramiro Raposo, VP of Growth at Bitwage – a platform that thousands of Argentines use to charge for their work in digital dollars from abroad – explains “What many of the service exporters who charge through us usually do is divide how they go. to receive each payment. So, for example, if they charge USD 1,000, they can set themselves to receive 30% in Argentine Pesos that will arrive in their bank account at a value close to the free dollar and thus be able to pay their fixed expenses, 65% in stablecoins tied to the dollar ( the most chosen is USDT) that they can change on an exchange if they need to, and 5% in bitcoin (BTC) to diversify and save.”