The citizens of Argentina turned to stablecoins over the weekend and they rose in price relative to the peso, which is in steep decline.
- Argentina’s Economy Minister Martin Guzman Resigns
- This led to a massive purchase of stablecoins
- Stable currencies rose in price relative to the peso
Like a stampede, the resignation of Argentina’s Minister of Economy, Martin Guzman, on Saturday sent many people running to take refuge in stablecoins or stable cryptocurrencies.
Major cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges reported that consumers bought up to three times more stable coins over the weekend than they usually do amid a looming economic crisis.
This is what they told CoinDesk the country’s cryptocurrencies. Three major cryptocurrency exchanges said consumers were looking to hedge against a possible (further) devaluation of the Argentine peso (ARS), whose purchasing power plummeted over the past year as inflation a general increase in prices and fall in the purchasing value of money. soared.
After Guzman’s Resignation, the Peso Depreciated About 15% Against Stable Currencies DAI and Tether on several major local exchanges. Both stable currencies rose from ARS 245 on Friday to ARS 280 over the weekend.
Then, after the appointment of Silvina Batakis to replace Guzman as the new Minister of Economy last Sunday night, the quotes ofTether in the exchanges Argentine pesos increased to ARS 303 per currency.
“Every time there is one of these news in Argentina, due to the 24/7 nature of cryptocurrencies, it is the first market an area or arena, online or offline, in which commercial dealings are conducted. where Argentina starts to look for a price for the US dollar. This drives up the volumes of cryptocurrencies. s”, dijo a CoinDesk Sebastián Serrano, executive director of Ripio, the cryptocurrency exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. based in Argentina.
Guzmán’s resignation is part of the latest fallout in a fight between Argentine President Alberto Fernández and Vice President Cristina Fernández de Kirchner over the country’s economic direction, which has seen inflation soar. In addition, Argentina’s central bank is running out of foreign currency currency is a medium of exchange that defines value. reserves, which is hampering imports, among other consequences.
More transaction reports on the rise
Argentine exchange Buenbit recorded a 300% increase in transactions on Sunday compared to the same day in previous weeks, the company told CoinDesk, and added that “ many people.” used their IAD as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. to borrow in Argentine pesos and buy more IADs as protection against a possible devaluation of the peso.
Several local media reports did not rule out the possibility of the government announce a bank and exchange holiday today to calm the markets.
Due to the lack of price references for the US Dollar over the weekend, most of the Argentine exchanges increased the spreads between bid and ask prices to 18%, when in general they are around 2%.
Pablo Sabbatella, founder of the crypto-education platform a place to buy, sell and store cryptocurrencyDefyEducation, that focuses on Latin America, tweeted yesterday that “the exchanges added a giant margin for people not to trade and [the exchanges] hedge against tomorrow’s opening price.”
Overshooting. It’s not that it went up that much. The exchanges added a giant spread a price difference between asking and selling prices of the asset. so that people don’t trade and hedge against tomorrow’s opening price.
– pablito.eth ???????? (@PabloSabbatella) July 3, 2022
“Due to demand and without a benchmark benchmarking is a method of comparing the performance of your asset or investment portfolio to that of similar assets to see whether there is a gap that can be bridged by increasing performance indicators. replacement price, prices went up and spreads widened.” tweeted Andres Vilella Weisz, head of trading and strategy at the Argentina-based cryptocurrency exchange, Lemon Cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. He added that after Guzman’s resignation, the demand for cryptocurrencies was strong.
Yesterday after Guzman’s resignation appeared strong demand for crypto dollars.
Due to the demand and without a reference replacement price, prices went up and spreads widened.
They are still well outside of normal but they did settle a bit a bit is a basic unit of information in computing. relative to yesterday’s amplitude.pic.twitter.com/9Kis7IcqCH
— AVW (@vwandres) July 3, 2022
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