Tether, the world’s largest stablecoin issuer, has formed a strategic relationship with crypto on-ramp platform KriptonMarket to boost USDT payments in Buenos Aires’ Central Market. This alliance is great news for Latin American retailers and customers, particularly in Argentina, where inflation has devastated the economy in recent years.
Argentina has been plagued by rising inflation, which is expected to reach a record high of roughly 108% in 2023. This worrisome inflation rate, the highest since 1991, has alarmed the entire economy. The collaboration between Tether and KriptonMarket appears to safeguard small companies in Argentina from the damaging effects of inflation.
This cooperation intends to offer educational activities in addition to improving corporate stability. This will assist raise cryptocurrency and blockchain technology awareness in the region.
(An advertisement for a cryptocurrency exchange in Buenos Aires. Source: Financial Times)
Tether’s stablecoin USDT has found a lot of appeal in nations where inflation is high. These digital assets allow users to convert their fiat money and avoid losing money due to inflation.
Businesses and individuals in emerging economies can transact and protect their funds from inflation by utilizing stablecoins instead of fiat currency or unstable crypto such as Bitcoin (BTC). This opens up a lot of possibilities for improving financial capabilities and allowing individuals to participate in the larger global economy.
However, there are concerns that stablecoins are overly reliant on fiat currencies such as the US dollar. A drop in global USD use and a loss of value could have an influence on stablecoin crypto assets. It is critical to assess their long-term viability in the ever-changing crypto sector.
Finally, the collaboration between Tether and KriptonMarket is a huge step toward empowering Argentine businesses and reducing regional inflation. Businesses can overcome the challenges of an unpredictable economy while supporting financial stability and growth by accepting stablecoins such as USDT.
Tether and KriptonMarket’s collaborative efforts in Buenos Aires aim to establish a supportive environment for blockchain firms and encourage the next generation of crypto enthusiasts.