Tether, the company that powers the most widely used stablecoin USDT, announced a collaboration with KriptonMarket to give Argentinian users access to stablecoins at the Central Market of Buenos Aires, one of the largest markets of fruits and vegetables in Latin America.
The collaboration will potentially give the Central Market’s 900 wholesale merchants the ability to accept USDT, pay bills directly with USDT, pay a % of employees’ salaries in USDT, and more. According to the Central Market website, 10,000 people every day interact in the most diverse commercial operations there. This collaboration will facilitate digital payments for them, in order to reduce intermediation costs for both producers and final consumers.
“We hope that bringing Tether to business owners and small shops in Buenos Aires can set an example to later be replicated across the globe. With the continuing devaluation of their nation’s currency, the people of Argentina need solutions to pursue their own financial freedom. If we are able to contribute to the well-being of an entire country through the state-of-the-art technologies provided by the blockchain, we will be one step closer to ending the fight against financial discrimination,” - said Paolo Ardoino, CTO of Tether.
Currently, the economic environment in Argentina is far from stable. The inflation has reached 30-year highs and soared above 100% last month, the prices change every week (if not every day). The Central Bank raised its key interest rate a few weeks ago by six percentage points reaching 97%, which is incredibly high. Saving money or investing is almost impossible. USD is widely used but is quite complicated to buy, and its rate also changes every day.
Stablecoins can be a good solution in this case and might help to combat inflation rate negative influence. Argentina does not regulate crypto exchanges, and the central bank has repeatedly warned about the risks of cryptocurrencies, but crypto is still quite popular in the country (according to an Americas Market Intelligence survey in 2022, 51% of Argentine consumers had already purchased crypto and 27% were buying cryptocurrencies regularly; these numbers continue rising). Besides Argentina was among the top 15 countries in the world for crypto adoption last year, according to the Chainalysis Crypto Adoption Index.
Tether also stated in the press release that the two companies are going to launch educational courses throughout the city of Buenos Aires “to inspire a new generation of blockchain enthusiasts and business professionals.”
We are looking forward to our Argentinian Observer paying for fruits at the market in USDT, but unfortunately, neither of the two companies mentioned the launch date. While waiting, we’ll continue to observe the situation and keep you updated.