Argentina turned to stablecoins as a hedge after the resignation of former economy minister Martin Guzmán on Saturday.
Guzman resigns Letter Published on Twitter after months of infighting over a renegotiated deal with the International Monetary Fund (IMF) signed by the previous administration.
According to Crypto, the price of USDT in Argentine pesos on crypto exchanges increased after the minister tweeted his resignation, which tracks prices every minute. One USDT sold on Binance for 257 pesos. On the Lemon Cash exchange, the amount increased by 11%, amounting to approximately 279 pesos.
While a small amount of crypto moved through Argentina’s markets, this itself could signal unrest, as Guzmán’s resignation highlights the split between President Alberto Fernández and Vice President Cristina Fernández de Kirchner.
Kirchner, in recent months, has become critical of the government’s handling of inflation, driving away votes from Guzman’s deal with the IMF.
Guzmán restructured $65 billion of international bonds with private creditors two years ago, which did little to dent investor confidence. He turned the tide after the national fiscal deficit peaked in 2020.
IMF plays hardball with Argentina
Guzmán’s $45 billion debt-restructuring deal with the IMF to avoid defaulting on $19 billion in March included a commitment to curb the use of cryptocurrencies in the nation, a move heavily criticized by citizens, who were on the streets at the time. But had come down. their rejection.
The move also drew criticism from bitcoin investor Anthony Pompliano, who commended Argentines for making their voices heard.
Crypto adoption on the rise despite lack of regulations
The volatility of the peso means that employees receiving payments in cryptocurrency have increased by 380% over the past year, making it the world’s most significant international employee base paid in crypto.
in March, Happen[In]crypto Reportedly, play-to-earn games such as Axi Infinity were being used to earn crypto, even as salaries paid in pesos continued to be devalued. Argentines play on behalf of Americans and Germans and take a portion of the crypto proceeds, as many games require significant capital to start playing.
Argentina currently lacks a comprehensive crypto regulatory framework. However, client pressure forced two banks in May to offer customers the option to buy USDC, Ether, bitcoin and XRP using a platform called Lirium, as long as their salaries were paid into their bank accounts. .
The move drew condemnation from the central bank, which said that regulated entities should not engage in an unregulated space.
Crypto mining has traditionally found a home in the south of Argentina that provides cheap electricity. But rising energy taxes amid rising crypto popularity have caused one of Argentina’s largest mining companies to experience a 400% increase in its energy costs.