In Argentina, the price of USDT has experienced a notable increase, attributed to a surge in demand for US dollars in the country.
According to reports from Criptonoticias, the value of USDT climbed above the 1,280 peso threshold on July 8, reflecting a price of approximately USD 1.02 instead of the typical USD 1.00.
This development follows a significant uptick in stablecoin purchases on the Lemon Cash platform, a leading cryptocurrency exchange in Argentina, which recorded its highest stablecoin transactions just three months prior.
The exchange noted a staggering 350% rise in stablecoin transactions within a single hour on April 14, from 10 am to 11 am.
The current market cap of USDT has been closely monitored, with firms like CoinMarketCap providing ongoing insights into its performance over the past year.
Growing Interest in USDT in Argentina
Lemon Cash has indicated that the trend of stablecoin buying is on the rise, reporting that in February 2023, trading volumes of USD-pegged cryptocurrencies were 2.5 times the monthly average for that year.
Several analysts attribute this trend to the Argentine government’s announcement on April 13 regarding the lifting of restrictions on USD purchases, which was a long-held regulation.
These foreign exchange limitations were initially introduced in 2019 in response to escalating inflation and declining domestic investment.
However, reports from La Nacion suggest that additional factors are contributing to this situation.
Concerns about a potential devaluation of the peso remain prevalent. Despite the government’s recent success in managing hyperinflation, confidence in the peso continues to wane.
Argentina inflation tumbles to five-year-low 1.5% in boost for Milei https://t.co/bFXBMAODWD https://t.co/bFXBMAODWD
— Reuters Politics (@ReutersPolitics) June 13, 2025
Plans for Dollarization Persist
President Javier Milei, who assumed office in 2023, reiterated his commitment to abolishing the Argentine peso and transitioning the economy to a dollarized system.
Media outlets have noted rising uncertainty as the country prepares for legislative elections on October 26.
According to Criptonoticias, many individuals are seeking refuge in dollar-based assets amid anticipations of potential government policy shifts.
Additionally, experts point to new regulations regarding Christmas bonuses that led to companies issuing bonuses in June, prompting individuals to invest excess funds in assets they perceive as providing long-term value.
For many Argentinians, this asset is often the US dollar, although Bitcoin (BTC) also retains significant popularity.
Traders frequently utilize USDT and other USD-pegged cryptocurrencies for BTC transactions.
The recent month has shown USDT price fluctuations against the Argentine Peso, revealing a complex interplay between supply and demand forces. (Source: Google Finance)
Furthermore, there are indications that FOMO (fear of missing out) could be playing a role in the dollar’s market dynamics.
The notion of “dólar barato” (cheap dollar) has gained traction within Argentine markets, influencing trading behavior.
Increased activity within the agricultural sector has also been cited as a driving factor, as farmers and exporters convert their foreign currency earnings into Argentine pesos, leading to additional volatility.
According to the consultancy firm Ecolatina, this phenomenon is tied to two significant factors: seasonal demand during the Christmas bonus period and deteriorating expectations for post-liquidation events, both of which contribute to rising dollar demand and create a self-fulfilling cycle.
President Javier Milei is counting on a shale-oil boom in Argentina to cement his libertarian economic reforms https://t.co/djmmzH5npj
— Bloomberg (@business) July 6, 2025
Rising Black Market USD Prices
Criptonoticias elaborated on how the “dólar barato” concept prompts savers to engage in purchasing behaviors aimed at asset protection, which, in turn, drives higher demand and subsequently increases prices.
This ongoing activity is largely propelled by anticipatory trading as individuals expect further rises in USD prices.
Reports by La Nacion highlighted an increase in black market dollar prices, which rose by 3.25% between July 4 and July 7.
Additionally, the MEP dollar rate, utilized to legally dollarize savings in emergency situations, saw an increase of 2.4%, climbing from ARS 29.52 to ARS 1,276.44 during that same timeframe.
In a separate development, Tether, the issuer of USDT, recently announced plans to explore a collaborative Bitcoin mining project that would utilize renewable energy from Brazil.
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