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
Moonbirds to launch BIRB token in early Q1 2026

Aligning Universities with Emerging Industries: The Critical Need for STEM Investment
- Global industries demand AI, renewable energy, and biotech skills faster than traditional education systems can supply, creating a critical skills gap. - Universities like MIT and Stanford are embedding AI across STEM curricula while industry partnerships accelerate hands-on training in automation and biomanufacturing. - Renewable energy programs with apprenticeships and public-private funding are addressing talent shortages as $386B global investments outpace workforce readiness. - Biotech's fragmented

PENGU Token Value Soars: Blockchain Data and Institutional Interest Indicate Optimal Timing for Investment
- PENGU ranks #81 with $706.5M market cap, showing rising institutional interest and whale accumulation. - The pending Canary PENGU ETF, if approved, could unlock institutional capital by including NFTs in a U.S. ETF. - Mixed on-chain signals (RSI 38.7, OBV growth) and 2B tokens moved from team wallets highlight uncertainty. - Partnerships with Care Bears and Lufthansa, plus Bitso collaboration, expand utility but face regulatory risks. - Recent 8.55% price rebound and 2.6% gain post-BNB listing suggest ca

Evaluating How the COAI Token Scandal Influences Cryptocurrency Regulatory Policies
- COAI Token's 88% price crash and $116.8M loss exposed systemic risks in centralized AI-DeFi projects with opaque governance. - Global regulators responded with stricter frameworks, including EU's MiCA and Singapore's asset freezes, to address jurisdictional gaps. - Institutional investors now prioritize compliance, with 55% of hedge funds allocating to digital assets via tokenized structures in 2025. - Emerging solutions include AI-driven risk platforms and anthropological governance models to enhance tr

