- USDT prices in Argentina have surged above 1,280 pesos as demand for dollar-pegged assets grows amid economic uncertainty and weakening trust in the local currency
- Factors such as lifted forex restrictions, upcoming elections, and seasonal bonuses have fueled a rush into USDT and Bitcoin as safe-haven investments.
Tether (USDT), the world’s largest USD-pegged stablecoin, is trading at a premium in Argentina as the demand for U.S. dollars intensifies. On July 8, the price of USDT climbed past 1,280 Argentine pesos, according to a report from Criptonoticias. This valuation effectively pegs one USDT at $1.02, signaling a surge in local appetite for dollar-denominated assets.
The spike in USDT prices comes amid broader financial unease in the Latin American country. Though the Argentine government has claimed progress in controlling hyperinflation, public confidence in the peso remains low.
Market participants are increasingly seeking refuge in more stable assets, and for many, that means USDT.
Earlier this year, Lemon Cash, one of Argentina’s leading crypto exchanges, recorded an all-time high in stablecoin transactions. On April 14 alone, between 10 a.m. and 11 a.m., stablecoin activity jumped over 350% hour-on-hour.
The trend hasn’t slowed since. In February, the exchange noted that monthly USD-pegged coin trading volume was already 2.5 times higher than the 2024 average.
Analysts trace much of the growing demand back to a government decision in April to lift restrictions on U.S. dollar purchases. These foreign exchange controls had been in place since 2019, aimed at stemming inflation and discouraging capital flight. However, their removal seems to have intensified market activity rather than calmed it.
Other factors are also contributing to the USDT surge. With legislative elections scheduled for October 26, many Argentinians are bracing for potential shifts in economic policy. President Javier Milei, who campaigned on a promise to dollarize the economy, has stirred both hope and uncertainty. As a result, many savers are converting their funds into dollar-linked assets preemptively.
The recent disbursement of Christmas bonuses in June further fueled this trend. With extra cash on hand, workers and investors alike are channeling their funds into assets that can preserve value, USDT and Bitcoin chief among them. Many Argentine traders now use stablecoins as an on-ramp to buy BTC or as a store of value in themselves.
Interestingly, the market phenomenon known as “dólar barato” (cheap dollar) has taken hold. The idea that the dollar is undervalued is driving a form of FOMO (fear of missing out), prompting even more demand. This mindset has been amplified by the accelerated liquidation of agricultural exports, which injects more pesos into the economy and fuels speculation.
As the peso continues to struggle for credibility and political uncertainty looms, USDT’s popularity in Argentina appears poised to grow. Whether it’s seen as a safe haven, a tool for BTC trading, or simply the lesser evil in an unstable economy, USDT is fast becoming a crucial pillar in Argentina’s financial landscape.