Argentines use underground "crypto caves" to escape inflation by trading pesos for stablecoins.
As Argentina grapples with skyrocketing inflation and strict capital controls, locals are turning to black market exchanges known as "crypto caves" to trade their pesos for stablecoins.
These secret outlets allow Argentines to exchange pesos for Tether (USDT), a stablecoin pegged to the US dollar. At crypto caves, Argentines can access far better exchange rates compared to official channels and banks, which are barred from dealing in dollars.
The pseudonymous exchanges emerged from decades-old "financial caves" that operated illegally during past currency controls.
Ironically, many shun Bitcoin payments despite regulatory steps to permit cryptocurrency contracts. The reasoning: Bitcoin's extreme volatility could wreck budgets in an already unstable economy. Locals prefer Tether's stable 1:1 dollar parity.
So for now, crypto caves persist as anxious Argentines seek stablecoin havens. Whether the informal markets fade if reforms succeed remains to be seen. But their emergence highlights the desperate search for economic stability when state policies fail.
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