• Argentinians can now use the USDT stablecoin to purchase goods at the Central Market of Buenos Aires.
• The move was enabled by a partnership between Tether and on-/off-ramp platform KriptonMarket.
• This will help reduce intermediation costs, provide a payment option pegged to the US dollar and give users access to a safe haven from macroeconomic shocks.
Argentina’s Central Market Now Allowing Payments with USDT Stablecoin
The Central Market in Buenos Aires is one of Latin America’s largest movers of fruits and vegetables, supplying over 12 million people per month in Argentina. The move to accept payments with the USDT (USDT) stablecoin has been enabled through a partnership between Tether and on-/off ramp platform KriptonMarket.
Benefits for Consumers
This collaboration will enable companies to accept and pay bills with USDT, as well as pay a percentage of employee salaries with the stablecoin. This will help reduce intermediation costs, provide a payment option pegged to the US dollar and give users access to a safe haven from macroeconomic shocks due to hyperinflation and fiat peso devaluation in Argentina.
Cryptocurrency Adoption Booming in Argentina
April’s inflation rate rose to 108.8% year-over-year in Argentina, remaining at its highest level since 1991 after rising 104.3% in March, pushing many Argentinians towards crypto adoption as a way of preserving their wealth against market fluctuations. Despite tight monetary policy imposed by Argentine central bank raising its benchmark interest rate to 97%, it appears not enough is being done yet on curbing price escalation further leading many towards cryptocurrency adoption as an alternative measure for financial security in their country.
Statement From Tether CTO Paolo Ardiuno
Paolo Ardoino, chief technology officer of Tether said: “With the continuing devaluation of their nation’s currency, the people of Argentina need solutions to pursue their own financial freedom. If we are able to contribute to the well-being of an entire country through the state-of-the-art technologies provided by blockchain, we will be one step closer to ending the fight against financial discrimination.“
The collaboration between Tether and KriptonMarket is an important step forward for cryptocurrency adoption in Latin America’s second most populous country – providing consumers with more options for conducting transactions that are less susceptible market fluctuations while also reducing intermediation costs overall when paying bills or salaries – ultimately contributing towards economic stability within Argentina during these challenging times caused by hyperinflation and currency devaluation throughout 2020/2021 so far this year