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Crypto Caves: Argentines Seek Refuge from Inflation in Underground Markets!! As Argentina battles crippling inflation, its citizens are turning to unconventional methods to shield their wealth. Enter the “crypto caves,” clandestine peer-to-peer exchanges offering a lifeline amidst strict currency controls and a plummeting peso.
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These hidden havens, dubbed “non-visible places” by experts, facilitate the purchase of U.S. dollar stablecoins like Tether (USDT). Unlike Bitcoin, stablecoins are pegged to the dollar, offering a hedge against the peso’s volatility. Locals can exchange their pesos for USDT at rates far exceeding the official exchange, a crucial advantage in a country where inflation recently hit a staggering 211.4%.
These “caves” are a modern iteration of Argentina’s historical “financial caves,” which emerged during currency controls in the 1980s. Today, they operate discreetly, offering a much-needed alternative to the official market.
While President Milei’s recent legalization of Bitcoin for contracts represents progress, its high volatility makes it less appealing for everyday transactions. Argentines favor USDT on the Tron network due to its faster processing, lower costs, and 1:1 peg to the dollar, eliminating the need for multiple conversions.
Here in Argentina usually the preferred method of payment is USDT over Tron (if someone sends it), mainly because of lower tx costs. https://t.co/dnSxB2fBJ0
— BowTiedMara (@BowTiedMara) July 15, 2023
However, crypto caves exist in a legal grey area, with some facing investigations and raids. Yet, for many Argentines, they are a beacon of hope in a challenging economic landscape. The future of these caves remains uncertain, potentially fading with relaxed currency controls, but their current significance is undeniable. They represent a stark reminder of the lengths people go to when faced with economic turmoil and illustrate the growing role of crypto in alternative financial systems.
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