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Embracing USDT in Argentina's Central Market
Now, residents of Argentina have the capability to use the USDT stablecoin to purchase dairy products at Buenos Aires' Central Market, one of the leading distributors of fruits and vegetables throughout Latin America. This transition was made possible through a unique collaboration between Tether, the stablecoin provider, and KriptonMarket, a platform that facilitates both on-ramp and off-ramp services.
Broadening Financial Flexibility
This partnership aims to empower companies with the ability to accept and settle invoices using USDT. Moreover, it will allow businesses to allocate a proportion of their payroll to the stablecoin. The Central Market of Buenos Aires, which services over 12 million people each month and houses more than 500 wholesale businesses, will be one of the beneficiaries of this new financial flexibility. Furthermore, the marketplace provides employment to over 2,000 individuals.
Mitigating Market Volatility and Reducing Costs
Tether, in a statement shared with Cointelegraph, highlighted that this collaboration would curtail intermediation costs and provide users with a payment option that is tied to the US dollar, hence less prone to market volatility.
Countering Hyperinflation with Cryptocurrency
The adoption of cryptocurrency in Argentina is growing rapidly, in response to soaring inflation and the devaluation of the nation's fiat peso. The inflation rate in the country escalated to a staggering 108.8% year-over-year in April, the highest level since 1991. Despite the Argentine central bank raising its benchmark interest rate to 97% on May 15, such rigorous monetary policies seem ineffective in curtailing the skyrocketing prices.
Paolo Ardoino, Tether's Chief Technology Officer, expressed, "The people of Argentina need solutions as their national currency continues to depreciate. If we can contribute to the well-being of an entire country through advanced blockchain technologies, we'll move a step closer to defeating financial discrimination."
In a recent conversation with Cointelegraph, Daniel Fogg from IOV Labs, which is behind the Rootstock smart contract platform, stated that emerging markets are leading the pack in crypto adoption. Individuals are seeking refuge in cryptocurrencies amidst the macroeconomic turbulence. "If you want to glimpse into the future of what crypto could become, look at Turkey, Colombia, Nigeria, Argentina. It doesn’t exist today in the United States or the U.K.," he emphasized.
