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Thursday, December 01, 2022

Goodbye mattresses, hello digital dollars: why they are booming in Argentina and their 4 advantages compared to physical tickets

Despite the fact that the dollar bill has historically been one of the preferred forms of savings for Argentina, more and more people are acquiring stablecoins.

Faced with the gradual crises the country has faced in recent decades, most citizens with savings potential maintain a very customary Argentine: hoarding dollars,

However, due to persistent constraints, Many turned to an untapped, online, and 100% legal replacement: “crypto dollars.” i.e. stable currencies or stable coins Which maintains parity with the greenback.

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Digital Dollar or Banknote: Which is Better?

Stablecoins are the most chosenespecially by savers, who decide to buy them for their practicality and relax when it comes Invest them in various options like bettingA type of fixed term crypto.

,One of the great benefits of accumulating stablecoins is that they can be bought unlimitedly.“, he explains iform Buonbit director Mattias Alberti, however, points out that there is an available deposit limit (in paise or dollars) depending on the status of each user.

He says that “it makes Differences in relation to other financial or banking platforms, which limit the dollar amount which can be purchased, for example, per month”.

Maximiliano Hinz, Director of Binancehighlights Advantages of stablecoins in relation to dollar bills,

  • 1. Security– There are no duplicate cryptocurrencies and the balance reflected in the wallet is 100% genuine. In addition, there are no “fake” tokens and there is no possibility of theft or seizure.
  • 2. Urgency and lack of middlemen: Buyers can send any amount they want, 7 days a week, anywhere in the world, with instant recognition
  • 3. Severity: “In Argentina, the conversion value of a $100 bill can vary from $50 or $20. In the crypto world, this does not exist. All fractions are equal”
  • 4. SeniorityDigital Dollars do not depreciate or devalue. On the other hand, this happens with physical ‘little face’ stamps. Many old bills are no longer accepted in some countries.”

Alberto explains that Stable coins can be used for purchases anywhere in the world that accepts your Prepaid MasterCardSince it is made as a debit to the day’s exchange rate, similar to “blue”. On the other hand, dollars in the bank account are debited at the official rate. In case of purchase in Argentina. In addition, Plastic offers 2% cashback in crypto for every purchase.

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It is not the only one that offers this possibility: Lemon offers Visa with 2% cashbackBellow Random Returns of up to 21% and Binance launched its card in Argentina with 8% withdrawal.

Digital Dollars Vs Bills, Which One is Best to Invest in?

Nahuel Martinez, director of operations and co-founder of South American Miners, explains: iform what There are a large number of stablecoins. The most commonly used are:

  • tie rope: Is known USDTis a stable cryptocurrency more popular And the one that is usually taken as a reference. It has “reserves” in physical dollars and sovereign bonds.
  • Midwife: it is one of the most stable used as savings, Its management is based on smart contracts under the Ethereum network. It has collateral in fiat currencies (dollars, euros) and crypto
  • Binance USD: its abbreviation basudi And this is the exchange’s crypto dollars Binance, It provides many advantages like be able to share For other stable coins at lower prices
  • USD Coin or USDC: It is backed by the dollar by combining cash with United States Treasury bonds. It is supported by Coinbase and Circle

Given this diversity of assets, Martinez recommends analyzing each project, although he states that USDT is more popular and reliable. On the other hand, Alberti points out that a fixed term in dollars in any traditional bank offers very little interest (1% or 2% per year). rather than, The cryptocurrency stake is around 5%.

“We offer the possibility Enter dollars in the Buenbit account and convert them, For example, a usdc, With one click they can generate daily credit yield“, he adds. And he finishes by saying that it is possible Guard against inflation of the US currencysince “dollars generate profitAs opposed to keeping it under the mattress or on an account.

Martinez agrees that billboards would be an “indirect” way to consistently lose value, as their purchasing power dwindles as prices rise by 9% per year in the US. “In an example cryptocurrency would be Platforms like Nexo that offer relatively ‘high’ monthly returns in dollars And, at the very least, fight against US inflation,” he continued.

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Usdt Is The Most Commonly Used Digital Dollar For Commercial Transactions

USDT is the most commonly used digital dollar for commercial transactions

Why do Argentines bet on the digital dollar?

Lemon Cash Research and Community Leader Santiago Di Paolo says that The main attraction of cryptocurrencies is to “substantially improve people’s lives”“. Like his colleagues, he warns that the main Driver There are “restrictions faced by Argentina in the exchange market”, which causes them to look for new ways to protect their money.

“In what sense, Stablecoins fall like a glove when it comes to savings, Without strictly buying dollars, they access a Asset that is ‘tied’ to the value of the greenback, This added to the fact that in return Can be used for weekly earnings in crypto through Lemon Cash,” he added.

but In addition to the “tangible” benefits, there are also “invisible” They are a product of technology. According to Alberti, the main ones are:

  • Guarantee: “Thanks to Blockchain Technology, Stablecoins Provide More Security, Transparency and Trust than a Financial Institution”
  • transfer capacity: “Unlike dollars, they can be sent from person to person via blockchain, without intermediaries, instantly and anywhere on the planet”
  • immediate returns: “It’s an investment method that rewards you for saving stable coinsGenerating passive income that exceeds a given period of time”
  • Automatic liquidity without time limits: “Holder can buy or sell them whenever he wants without any difficulty, schedule or banking hassles, 24 x 7 and instantly”
  • Ideal for entering the crypto ecosystem: “When purchasing a stablecoin, the user can convert it to another cryptocurrency, without waiting for the transfer or payment to be validated”

Thus, the digital dollar renews the Argentine custom of saving in the green, Without stepping into the bank and with the potential to generate returns, An unbeatable combo in times of crisis.

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