On the night of August 13, when the victory of javier milei in the STEP, the value of the so-called “crypto dollar” became news: its strong rise suggested a jump in the alternative prices of the US currency the day after.
It is that the demand for stable cryptocurrencies (or stablecoins) skyrocketed after the primary elections, as highlighted by different platforms that offer these assets. The possibility of buying it at any time of the day and the agility to operate, in addition to the possibility of using it as a security of value, are some of the factors that affect its growth.
For example, according to cryptomarket data, after the STEP, transactions on the platform grew 63.55% in August compared to the previous month. “The increase is mostly due to the purchase of stablecoins, specifically USDT and USDC”, they detailed. These types of cryptocurrencies are “tied” to the value of the dollar, which is why they are considered stable and are used as a safe haven.
“After the PASS, the average volume traded with digital dollars on the Bitso platform, in Argentina, practically tripled”, Julián Colombo, CEO of Bitso, explained to Ámbito, who added: “The so-called ‘crypto dollar’ continues to grow rapidly and has stood out as an alternative for countries that are going through moments of exchange uncertainty and economic challenges, such as inflation and devaluation of local currencies. According to Chainalysis, almost 31% of the crypto transaction volume in Argentina currently comes from stablecoins.”
When analyzing the factors that affected growth, he highlighted: “In the elections it is decided who will govern us for the next four years and that clearly has repercussions on the different economic variables. This is in line with the importance that Argentines give to the dollar, so it is logical that a variable that is part of our daily lives is affected by uncertainty, which in this case translates into waiting for the electoral results. .
“From Bitso we observe how these changes in the situation were reflected in the activity of the application. Since the crypto dollar is the only market that operates 24/7, it is the only place on election night where we could see these short-term changes reflected; the following Monday, when the markets opened, we saw movements in other variables such as bonds, shares or other currencies”, added Colombo.
In fact, he remarked that these “digital dollars” are the cryptocurrencies most used by Argentines, since by having their value tied to the dollar, “it allows avoiding the fluctuations that other assets have”. “In Bitso the most used it is USD Stablecoin, based on USDC, followed by USDT,” Colombo detailed..
“The impact of the elections resonated loudly, highlighting the transparency and versatility that characterize cryptocurrencies. The operations moved continuously since they are the only coins that can be accessed 24 hours a day. It is extremely interesting to observe how the ‘crypto dollar’ market anticipated what could happen that Monday in the conventional financial market, since the boost in prices is the direct result of supply and demand dynamics,” explained Matías Bari, CEO and co-founder of Satoshi Tango
The platform offers USDC, USDT and DAI, crypto assets whose parity is “paid 1:1 against the US dollar”. After the STEP, stablecoin trading grew 300% on Satoshi Tango.