Argentines turn to stablecoins amid falling peso and electoral uncertainty
- Stablecoins gain momentum with the devaluation of the Argentine peso
- Crypto arbitrage offers up to 4% profit per trade
- Cryptocurrency usage grows ahead of legislative elections
With the October 26 legislative elections approaching and the continued decline of the Argentine peso, the use of stablecoins and cryptocurrency arbitrage strategies has skyrocketed in the country. Since the beginning of October, the peso has lost more than 4% against the US dollar, leading many Argentines to seek refuge in digital assets as a way to protect their purchasing power.
According to Bloomberg , investors are taking advantage of the difference between the official and parallel exchange rates to profit through the so-called "rulo," a practice that involves buying stablecoins with dollars and reselling them for pesos at a rate about 7% below the official rate. This operation can generate returns of up to 4% per transaction, making it a popular alternative amid restrictions imposed by the Central Bank of Argentina.
Since October 1st, the government has banned citizens from reselling dollars for 90 days, further boosting the crypto market. Ripio exchange reported a 40% increase in stablecoin transactions in the week following the measure, while Lemon Cash reported a more than 50% increase in trading volume.
Julián Colombo, Bitso's manager in Argentina, explained that stablecoins "act as a vehicle for obtaining cheaper dollars." He noted that, because they are still in the regulatory process, the government "doesn't know how to control the liquidity" of these assets, allowing the market to grow without significant restrictions.
Although President Javier Milei has reduced inflation from nearly 300% to 30% since the end of 2023, concerns about the peso's devaluation and dwindling reserves remain. Throughout October, the central bank sold approximately $1,3 billion in dollars to contain exchange rate pressure.
Argentina maintains an increasingly open stance toward cryptocurrencies, with companies like Binance and Coinbase licensed to operate in the country. For many Argentines, stablecoins like USDT and USDC have become a way to preserve value. "Stablecoins are here to stay," said López, a local stockbroker, noting that "the dollar remains the true refuge in Argentines' daily lives."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
GeeFi’s Practical Ecosystem Challenges Avalanche’s Speculative Ambitions
- Avalanche (AVAX) fell to $14.94, with short-term volatility and long-term $326/2031 forecasts, contrasting GeeFi (GEE)'s $0.05 presale surge. - GeeFi's $300K+ presale (6.2M tokens sold) highlights its 3,900% ROI potential via a multi-chain wallet and 55% APR staking. - GEE's deflationary model and real-world crypto tools (DEX, spending card) challenge AVAX's speculative reliance on network upgrades. - With 80% Phase 1 completion and 700+ investors, GeeFi's urgency contrasts Avalanche's stagnant $13–$14 s

PENGU Token's Technical Surge and Changing Market Sentiment: A Brief Momentum Opportunity Among Altcoins
- PENGU Token offers high-risk, high-reward potential for short-term momentum traders, driven by technical indicators and ecosystem growth. - Structural risks like regulatory uncertainty and declining NFT demand pose significant challenges to its volatility-driven strategy. - Traders are advised to use tight stop-loss orders and position sizing, treating PENGU as a speculative, short-term play. - The upcoming Cboe ETF decision will be pivotal in determining PENGU's transition from volatile altcoin to viabl
Cardano News Today: How Getting in Early Fuels the Intense Competition in Crypto Presales
- Apeing's 2026 presale offers early access at $0.0001, targeting a 10x return as investors seek high-potential crypto opportunities amid market volatility. - Cardano (ADA) faces recovery challenges after a network split, while SUI's price surges and institutional interest highlight contrasting crypto market dynamics. - Grayscale's Zcash ETF filing and Securitize's EU tokenized securities platform signal crypto's growing institutional adoption and regulatory progress. - Analysts warn of systemic risks from

COAI Token Fraud Aftermath: Dangers and Warning Signs in New Cryptocurrency Ventures
- COAI Token's 88% collapse erased $116.8M, exposing systemic risks in algorithmic stablecoins, centralized governance, and regulatory gaps. - 87.9% token concentration in ten wallets enabled manipulation, contradicting decentralization claims while CLARITY Act ambiguities allowed regulatory exploitation. - Southeast Asia's crypto fraud hub status amplified risks, with COAI's failure mirroring FINRA-identified red flags like opaque tokenomics and anonymous teams. - Investors must prioritize technical audit

