USDТ + Argentina, is It a Future?

Argentina made headlines after the election. New charismatic president during the pre-election campaign promised to carry out radical and controversial reforms. Among the proposals are: liquidation of the Central Bank, renunciation of the national currency and transition to the American dollar.

At first glance, everything sounds too revolutionary to be true. Indeed, dismantling the Central Bank would require international coordination, as Argentina was too dependent on international financial institutions. However, the experiment with the transition to the dollar may well take place. Moreover, it is already underway, and is going quite successfully.

Right now you can pay with USDT stablecoins In the central market of Buenos Aires. Most traders are willing to accept them. And it’s not just a private initiative, but a joint project between Tether and the KriptonMarket platform to tokenize the farm market. The fact that traders easily accepted crypto is not surprising, to pay the national currency peso is uncomfortable and even risky with inflation of 150%. Stablecoin is guaranteed to be tamper-proof, technological and usable.

I’m not ruling out the possibility that by switching to the dollar, we’re talking about using stablecoins. From a financial point of view, the cash dollar is equivalent to the USDT. However, there are technological, political and legal risks involved.

Is the independent state willing to entrust the financial infrastructure to a private company? What happens if there are power and Internet outages? How will the required emissions be determined?

Most likely, if the "financial transition" takes place, we will see a combination of stablecoin (most likely USDT) and cash dollar. If all goes well, such a scheme may well replicate, and the dollar will get a second wind.

I will follow with interest the news from Argentina, one of the options of the financial infrastructure of the future is working out now there.

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