Stablecoin News – On July 9, 2025, Tether’s USDT stablecoin experienced a price spike in Argentina, trading at a premium as demand for U.S. dollar-pegged assets surged amid economic instability. Argentina, grappling with hyperinflation and a plummeting peso, has seen growing stablecoin adoption as citizens seek to preserve wealth.
A 2024 Visa survey noted 47% of crypto users in high-inflation countries like Argentina use stablecoins for savings, with USDT dominating due to its $154 billion market cap and availability on blockchains like Ethereum and Tron.
USDT, pegged 1:1 to the U.S. dollar, typically trades at parity, but local exchanges in Argentina reported premiums of up to 5% as dollar demand outstripped supply.
This reflects stablecoins’ role as a hedge against currency devaluation in emerging markets, where 1.4 billion unbanked adults rely on digital dollars for remittances and savings.
Tether’s CEO, Paolo Ardoino, emphasized USDT’s mission to serve the unbanked, noting that 37% of its 420 million users use it for wealth preservation.
Argentina’s economic woes, with inflation exceeding 100% annually, have driven crypto adoption, with stablecoins offering a cheaper alternative to traditional remittances. The World Bank estimates a $9.61 cost for a $200 U.S.-Mexico remittance, while USDT transactions average $1-$2.
However, regulatory scrutiny looms, with Tether facing criticism for past reserve transparency issues, including a $41 million CFTC fine in 2021.
Argentina’s lack of a federal crypto framework amplifies risks, though the U.S.’s GENIUS Act could set a precedent for global standards.
The USDT spike highlights stablecoins’ growing role in volatile economies, but it also underscores challenges like regulatory uncertainty and potential illicit use.
As Argentina’s demand for digital dollars grows, USDT remains a critical financial tool, though its long-term stability depends on global regulatory developments.
