Argentinians have found a fresh use for the USDT stablecoin – purchasing dairy products at the Central Market of Buenos Aires, one of Latin America’s largest hubs for fruits and vegetables. This has become a possibility thanks to a partnership between stablecoin issuer Tether and on-/off-ramp platform KriptonMarket, enabling companies to accept and pay bills with USDT, as well as pay a portion of employee salaries using the stablecoin.
The Central Market generates supplies for over 12 million people per month and houses more than 500 wholesale companies, providing employment to over 2,000 individuals. The collaboration aims to reduce intermediation costs and provide a payment option pegged to the US dollar, offering a layer of protection against market fluctuations.
The surge in crypto adoption in Argentina can be attributed to factors such as hyperinflation and the devaluation of the country’s fiat peso. With an inflation rate of 108.8% in April, the highest since 1991, and the Argentine central bank’s consistent efforts to curb price escalation with interest rate hikes, Argentinians are looking for alternative solutions to safeguard their financial well-being.
Tether’s chief technology officer, Paolo Ardoino, says that by contributing to the financial freedom of Argentinians through blockchain technology, we can make significant progress in the fight against financial discrimination. This sentiment is echoed by Daniel Fogg from IOV Labs, the entity behind the smart contract platform Rootstock. He believes that emerging markets are at the forefront of crypto adoption, as citizens turn to cryptocurrencies to protect themselves from macroeconomic shocks.
Fogg asserts that countries like Turkey, Colombia, Nigeria, and Argentina showcase the future potential of cryptocurrencies, while developed nations like the United States and the United Kingdom have yet to harness the technology to its full extent.
This development in Argentina is an example of how blockchain technology can be embraced to enhance financial freedom and protect individuals from the detrimental effects of an unstable economy. However, the risks and uncertainties surrounding cryptocurrencies should not be overlooked. While crypto adoption within a country may lead to financial stability for many, it’s crucial to be aware of the potential drawbacks associated with relying on technology still in its nascent stage. As with any innovation, time will tell whether embracing cryptocurrencies as a means of safeguarding financial well-being pays off in the long run.
Source: Cointelegraph
