tl;dr
A new report from blockchain data firm Chainalysis reveals a growing adoption of stablecoins in Argentina, attributed to the devaluation of the country's currency. The research indicates that Argentina has one of the highest stablecoin transaction volumes in the region, with 61.8% of all crypto tran...
A new report from blockchain data firm, Chainalysis, reveals a growing adoption of stablecoins in Argentina, attributed to the devaluation of the country's currency. The research indicates that Argentina has one of the highest stablecoin transaction volumes in the region, with 61.8% of all crypto transactions. This surge in stablecoin use is driven by the country's high inflation rates, with people using stablecoins to gain exposure to U.S. dollars. The report also highlights how citizens in unstable markets, like Argentina and Venezuela, are turning to cryptocurrencies to take control of their financial futures.
Crypto adoption is growing in Argentina, with a correlation between stablecoin use and the devaluation of the country’s currency, according to a new report. Research released Wednesday by blockchain data firm Chainalysis showed that Argentina’s stablecoin use is among the highest in the region, with the South American country’s share of stablecoin transaction volume at 61.8% of all crypto transactions—higher than Brazil’s 59.8%. Only Colombia landed higher at 66%. The reason for Argentina’s surging use of such assets, according to Chainalysis, is that people in the country—which has one of the highest rates of inflation in the world—are using stablecoins to get exposure to U.S. dollars.
“Interest in stablecoins highlights the role of crypto in unstable markets and how citizens are able to take better control of their financial futures by embracing cryptocurrency, regardless of official monetary policy,” the report said. It added that the Argentine peso’s decreasing value regularly led to an increase in stablecoin trading on crypto exchanges.
Stablecoins are cryptocurrencies with a relatively fixed price that are typically pegged to a fiat currency—often the US dollar. They typically work by a private company issuing digital tokens, on a number of major blockchains, and then holding greenbacks in reserves to back them. They are also the backbone of the crypto economy: The 24-hour trading volume of the two biggest stablecoins—Tether and USD Coin—is much higher than Bitcoin’s, CoinGecko data shows. This is because the digital tokens can be used to enter and exit trades seamlessly without having access to a traditional bank.
The Argentine economy is a mess: Argentina’s inflation rate in the 12 months through August stood at 236.7%, data from the country’s central bank shows, and over half of the population lives in poverty. While there are signs that inflation is cooling, the impact from the last year is still rocking the economy. Argentina last year elected libertarian economist Javier Milei as President. The firebrand populist promised to sort out the country’s finances and previously spoke about his interest in Bitcoin.
Chainalysis’ report also noted that in Venezuela, another country suffering from hyperinflation, citizens are also using cryptocurrencies to hedge against the country’s economic crisis. The country received—or bought using a centralized exchange—the largest amount of cryptocurrency of any other nation in the region, the report said.
More about General Dynamics Corporation
General Dynamics Corporation Summary General Dynamics Corporation
General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.
Industry and Sector
Industry: Manufacturing, Ship & Boat Building & Repairing
Key Financial Metrics
Market Cap: $81.58 billion
PE Ratio: 23.18
EPS: $5.48
Dividend Yield: 12.81
52-Week High: $164.48
52-Week Low: $78.90
Revenue: $44.946 billion
Net Income: $3.24 billion
Debt to Equity: 0.207
Current Ratio: 0.18