The use of stablecoins in Argentina has boomed in the last week. The demand for the crypto asset has increased up to 300% in exchanges due to the resignation of the Minister of Economy, Martín Guzmán.
He resigned from his post last Saturday, which affected the value of the Argentine peso (ARS). Thus, with the country facing a severe economic crisis, stablecoins played an alternative role to the country’s fiat currency.
According to exchanges operating in Argentina, the trading volume of stablecoins grew over the weekend. This increase in demand for crypto assets accompanied Martin Guzmán’s resignation and lasted for two days.
On some platforms, the volume traded over the weekend increased by as much as 300%. The stablecoins most traded by Argentinians were dai (DAI) and tether (USDT).
In addition to influencing the price of the Argentine peso against the dollar, the departure of the Economy Minister has affected the fiat currency price in stablecoin transactions on the crypto market.
Like DAI, the USDT price rose 15% last weekend, following Argentina’s economically insecure situation. Before the minister resigned, each stablecoin was trading at around 245 ARS.
However, this increased to 280 ARS as the Argentine peso devalued. Finally, shortly after the resignation, this price jumped to 303 ARS. The country currently accumulates projected inflation of 60.7% for the year.