Dollar This is the “passion” of Argentina, In the face of control and exchange rate differentials above 100% in the forex market, they sharpen their ingenuity to save in hard currency.
in this context, increasing use of stable coins, whose value is pegged to another asset (such as gold) or a fiat currencylike a green ticket, Known as the “Digital Dollar” or “Crypto Dollar”, a) yes, protect your capitalsin hat, Online and 100% legal.
“The global economic context, and in particular the regional, lead Cryptocurrencies improve people’s lives, due to their many benefits, In addition, restrictions on access to the foreign exchange market have been added, prompting Argentines to seek new and better ways to protect their money.” iform Santiago Di Paolo, Lemons Community and Research Leader.
What are the main digital dollars?
Days of volatility arise out of the blue after economic cabinet change Stampede among those taking refuge in various properties,
Thus, the main operation is in services or “exchanges”. Strong growth in demand for various “cryptodollars”,
- Tether (USDT): In Argentina it can be bought here Binance P2P, Bitso, Lemon Cash, ArgenBTCamong other exchanges
- USD Coin (USDC): Each unit is backed by a combination of cash and the US Treasury. can be purchased through Binance P2P, Bitso, Ripio and Satoshitango
- Midwife: Supported by other cryptocurrencies stored in the Smart Contract Vault. They can be bought in the country Bitso, Buenabit, Binance, Ripio and Satoshi Tangoamong others
- AirUSD: Airtm’s offer is audited by FINCEN (US Financial Crime Enforcement Network) to verify that there is a dollar deposit for each unit
“Devaluation and inflation are the most relevant problems on the economic agenda and as a result, Many join crypto to protect their money in dollar-denominated currencies. and not as an investment in volatility in cryptocurrencies”, he revealed. iform Julian Colombo, Head of Public Policy at Bitso.
Di Paolo agrees that “Stablecoins act like a glove if you’re trying to save: without strictly buying dollars, Access a crypto asset ‘pegged’ to value US currency.”
they can also be used Earn weekly crypto profits with Lemon Cash, Making stablecoins a “great option,” adds Lemon Execution.
What types of digital dollars exist?
Although there are more and more options to invest in the market, but it must be kept in mind that Each token maintains its parity with another currency across multiple assets. That the issuing platform attaches its reservations.
Colombo indicates that “Some are backed by money deposited in banks and audited by third parties“. On the other hand, “are” Collateral in other cryptocurrencies by algorithm.
In what sense, Di Paolo refers to a variety of stablecoins.,
- Centralized, Collateralized in Fiat Currency: “They are companies that receive bank deposits and issue a stablecoin, such as Tether (USDT) for every dollar they receive.”
- Decentralized, supported in other cryptocurrencies: “Its issuance is through the use of smart contracts. Decision making is decentralized in DAOs, for example DAI.”
- Algorithm: “They have no support, but they try to keep peg (with price parity 1:1) through an algorithm”.
,They try to keep the peg because so far there ain’t no one who’s got it, The closest was TeraUSD (UST), which was once in the top 10 crypto caps, but saw a dramatic decline in May after losing parity with the dollar.
DAI is a “decentralized” digital dollar, which makes it “secure” compared to USDT, as it is not dependent on the decisions of the company.
UST was the third generation stablecoin issued by Terraform Labs.Including the LUNA cryptocurrency, which came up with a TEA (Annual Effective Rate) of returns close to 20% across multiple exchanges.
losing its parity with the dollar, LUNA and UST both collapsed. In view of this, Terra, the blockchain on which both run, was rebranded to Terra 2.0 and its tokens renamed to TerraClassicUSD (USTC) and Terra Classic (LUNC), although they were reverted to recovering previous values. failed in
,Algorithm works with cryptocurrency backing And for those who deposit their funds (usually BTC or ETH) the rate they pay varies in relation to the price of the collateral: if they need more liquidity, they raise the rates; If they’re heavily anchored, they make it down,” he explains. iform Maximiliano Hinz, CEO of Binance LATAM.
How to buy digital dollars and what profit do they make?
According to a Binance executive, today “It is easy to buy stablecoins. by bank transfer, Anyone can buy any amount they want in less than 5 minuteswithout minimum or maximum amount: be it 5, 7 or 1,000 USDT, the price will always be the same”, he adds
in Argentina, There are two ways to acquire these assets.,
- Prima facie:exchange like Bitso, Lemon Cash, Satoshi Tango, among others. An account is funded in pesos via bank transfer or fintech (SatoshiTango accepts cards through Mercado Pago). With these funds, the desired crypto is acquired
- P2P: Binance, Airtm and Paxful offer peer-to-peer trading. It is a way in which one user sells and the other buys through various means of payment (bank transfer or fintech, collection networks, other crypto, etc.).
In addition, the platforms offer Various options to invest and generate profit With these digital currencies. In the case of Namecan be achieved Up to 8% return in dollars Up to 2% in digital and bitcoinThrough your investment tool name+.
“Bitso generates returns by deploying user funds through a range of investment strategies, leveraging CEFI options (institutional lenders) and DeFi (decentralized finance),” Colombo explains.
He adds: “We evaluate options before deploying funds, constantly monitoring market conditions. It is essential that users achieve competitive returns and liquidity all the time,
USDT is the most widely used stablecoin for all forms of payment in Argentina
for its part, Lemon Lemon Earn Service provides, Which allows the user to generate weekly profits with the cryptocurrencies they have. DiPaolo indicates that These returns are dynamicthat is, “may vary daily“. For example, annual rate is,
- DAI: 7,03%
- USDT: 6.61%
- USDC: 7.01%
on behalf of Binance, The exchange allows trading of stablecoins via P2P. The firm has several services to generate returns with these assets: Share, flexible savings services and liquidity farming options.
According to the manager,The highest returns today are found in currencies like USDT and BUSD, which earn 10% annual interestHinge says.
“One advantage of these programs is that Interest payments are daily, with which one can choose to reinvest or redeem them and keep the starting capital in the program earn“, he concludes.