Tether Teams Up With Kriptonmarket To Allow USDT Payment In Argentina
World’s largest stablecoin issuer, Tether, has achieved a strategic partnership with the crypto on-ramp platform, KriptonMarket, to boost USDT payments in Buenos Aires’ Central Market. The stablecoin issuer stated that the deal with Kriptonmarket enables small businesses in the region to accept payments in USDT while paying for goods and services with the same asset.
Tether Targets Inflation Control For Small-Scale Businesses
Merchants and customers in Latin America eagerly anticipate Tether’s latest offering, given the nation’s ongoing struggle with hyperinflation. The depreciation of Argentina’s national currency peso over the past few years has sparked excitement about this development.
According to recent statistics provided by the National Institute of Statistics and Census (INDEC), Argentina witnessed a significant surge in inflation during April 2023, reaching a record high of 108.8%. This inflation level has not been seen since 1991, indicating a worrying sign for the country.
With its new payment system in collaboration with KriptonMarket, Tether aims to protect small-scale businesses in Argentina against the country’s soaring inflation rate. This is excellent news for the Central Market of Buenos Aires.
The market is renowned as one of Latin America’s biggest markets for fruits and vegetables, housing 900 wholesale and 50 retail businesses and employing 2,000 individuals. Additionally, the system aims to eliminate intermediation costs by facilitating direct digital transactions between these businesses and their end consumers.
This innovative approach can empower Argentine enterprises to create a more efficient and cost-effective transaction ecosystem. Moreover, as part of their joint initiative, Tether and KriptonMarket plan to organize educational programs throughout Buenos Aires.
These programs aim to encourage the next generation of crypto enthusiasts and foster the growth of blockchain businesses in the region. Tether’s chief technology officer (CTO) Paolo Ardoino noted that the firm hopes that bringing small businesses and owners together can pave the way for other regions to adopt USDT for transactions.
By providing valuable knowledge and resources, they seek to promote awareness and understanding of cryptocurrency and blockchain technology among the local community, nurturing a supportive ecosystem for innovation and entrepreneurial endeavors.
Stablecoins As Inflation Hedge
Most global fiat currencies are commonly associated with high inflation rates, primarily caused by governments resorting to printing more money during economic crises. Accordingly, the continuous rise in inflation gradually erodes a fiat currency’s purchasing power.
This prompts individuals worldwide to actively seek means to safeguard the value of their earnings and investments, constantly exploring options to preserve their wealth. Countries like Nigeria, Venezuela, Colombia, Sudan, and others have found stablecoins like USDT valuable tools in combating inflation.
These stablecoins provide users with a modern and innovative means to save, access, and utilize their capital. They serve as an effective inflation hedge, empowering individuals in these nations to preserve the value of their funds and engage in financial activities with greater confidence and convenience.
Within these emerging economies, stablecoins present a unique opportunity for entrepreneurs and businesses to earn and engage in transactions using assets pegged to the actual value of foreign currencies. Most people in developing countries reportedly hold one or more stablecoins alongside other crypto assets to safeguard their funds against soaring inflation.
This innovative approach provides a secure and reliable avenue for participation in the global financial markets. It also empowers individuals to navigate international trade and finance quickly and confidently.
By leveraging stablecoins, these individuals can effectively bridge the gap between local and international economies, opening doors to new opportunities and enhancing their financial capabilities. Nevertheless, a growing fear exists regarding stablecoins due to their dependence on fiat currencies, typically the US dollar.
Thus, any decline in the global adoption of the USD could potentially impact the value of these supposedly “non-volatile” crypto assets. This concern arises from the interconnected nature of stablecoins and the underlying fiat currency.
Hence, there is a need for continued observation and evaluation of the stability and resilience of these digital assets in an evolving global financial landscape.
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