Bitrabo Editorial
Tether, the issuer of the world’s largest stablecoin, has partnered with KriptonMarket, a cryptocurrency on/off ramp platform, to enable USDT transactions in Buenos Aires’ Central Market. As per Tether’s statement, the partnership with KriptonMarket will allow market merchants to accept USDT as payment for goods and services, and pay their bills and a portion of their employees’ salaries with the same stablecoin.
Tether Aims to Shield Small Businesses from Inflation
The Central Market of Buenos Aires is one of Latin America’s major fruits and vegetable markets, with 900 wholesale and 50 retail businesses, employing 2000 people. Argentina, the Latin American nation, currently experiences hyperinflation, with its fiat currency peso losing value over the years.
The Tether team hopes that the introduction of the new payment system with KriptonMarket will shield Argentine small-scale businesses from the country’s inflation rate. The partnership is also expected to eliminate intermediation costs by enabling direct digital transactions between these businesses and their consumers. Tether and KriptonMarket will also conduct educational programs across Buenos Aires’ city to raise the next generation of crypto enthusiasts and blockchain businesses.
The USDT is currently the largest stablecoin in the market with a total market cap of $82.9 billion.
The Role of Stablecoins in Combating Inflation
Most fiat currencies across the world have high inflation rates due to governments printing money into circulation during economic distress. As inflation rises, the purchasing power of a fiat currency decreases, leading people to search for means of preserving the value of their earnings and investments.
For developing nations such as Nigeria, Colombia, Venezuela, and Sudan, stablecoins such as USDT have served as an inflation hedge, allowing users to save, access, and utilize their capital in a secure and innovative manner.
However, there are still concerns about stablecoins as their values are pegged to fiat currencies, which may affect these “non-volatile” cryptocurrencies if the adoption of the USD decreases worldwide.
USDT total market cap at $82.8 billion | Source: USDT Market Cap Chart On Tradingview.com
Disclaimer
The article’s content presents the author’s opinion as of the publication date. It is subject to market conditions and may change at any time based upon subsequent developments. The information and opinions contained in this article are for general information purposes only and do not constitute investment advice or a solicitation to buy or sell any security or cryptocurrency.