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Settlement introduced in the central market of the Argentine capital
Tether, which issues crypto assets (virtual currency) such as the US dollar stablecoin “USDT”, announced on the 18th that USDT can now be used to purchase products at the central market in Buenos Aires, the capital of Argentina.
It was realized through a partnership with KriptonMarket, a company that provides virtual currency payment services locally.
KriptonMarket launches payment collaboration for small Businesses in Argentina with Tether. The initiative will enable wholesale & retail merchants at Mercado Central the ability to accept USDt, pay bills &, pay a % of employees’ salaries in USDt,& more.https: //t.co/7yz99xfvPV pic.twitter.com/OQcqbHtWdL
— Tether (@Tether_to) May 18, 2023
Central market wholesalers and retailers will now be able to make payments in USDT, pay salaries to their employees in USDT, and more.
The Central Market in Buenos Aires is one of the largest agricultural markets in Latin America. There are many wholesale stores, retail stores and restaurants, employing more than 2,000 people.
It also cooperates with more than 600 farms and sells about 106,000 tons of agricultural products such as fruits and vegetables every month.
What is a stablecoin
A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike BTC, ETH, and XRP, which have volatility, their purpose is to maintain their value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.
Cryptocurrency Glossary
Responding to inflation in Argentina
Tether explained that the introduction of USDT is aimed at facilitating digital payments to combat inflation in Argentina and reduce intermediary costs.
Inflation in Argentina has accelerated in recent months, reaching 104%. Businesses and consumers are experiencing difficulties in preserving the value of their savings and rising commodity prices.
Tether’s Chief Technology Officer (CTO) Paolo Aldoino said:
With the peso’s legal currency continuing to depreciate, Argentines need solutions to achieve economic freedom.
If the state-of-the-art technology provided by blockchain can contribute to improving the welfare of entire nations, it will be a step forward in ending inequalities in financial access.
In addition to offering USDT payments, Tether and KriptonMarket will launch educational courses on blockchain and business across the city of Buenos Aires.
The program also emphasizes compliance with all regulations in Argentina.
Government wary of foreign currency outflow
In Argentina, due to the economic crisis and hyperinflation, cryptocurrencies have gained traction as a way to protect assets from inflation. According to a survey conducted in April 2022 by Americas Market Intelligence, nearly 51% of Argentine consumers have purchased cryptocurrencies.
On the other hand, the Argentine government has been concerned about the outflow of foreign currency out of the country due to the purchase of virtual currencies such as Bitcoin (BTC) by citizens denominated in US dollars.
In May 2022, the Argentine central bank notified that the country’s banks cannot conduct or offer to customers transactions such as cryptocurrencies. Also on the 4th of this month, payment service providers are prohibited from offering users such as “automatic purchase” functions of virtual currency.
connection: Argentine central bank bans virtual currency transactions and intermediation by payment providers
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