By Michael Scott
Sebastián Serrano said that irrespective of the changes brought by Javier Milei to the nation’s monetary structure, stablecoins will possibly have an unwavering position in the economy.
Javier Milei, Argentina’s president-elect, vied on the promise of economic change.
The transformation’s shape will be known following his installment on December 10. However, Sebastián Serrano, Ripio’s chief executive officer, said that stablecoins will be critical in the country’s financial lives regardless of the outcomes.
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Serrano said that Argentina’s crypto community has reacted eagerly to the ex-economic professor’s election. Ripio, an Argentina-founded cryptocurrency exchange, experienced a 180% increase in new users last month. On November 19, the day of the runoff election that took Milei to power, the exchange experienced a 110% week-on-week rise in new users.
The enthusiasm was also depicted in the numerous trading activities with the United States dollar-pegged UXD stablecoin, which Ripio unveiled. CoinGecko’s findings show that UXD lost its peg on November 17 and experienced a remarkably high of $5.03.
According to Serrano, stablecoins already have a crucial role in the citizens’ financial lives and might even play a more prominent role in the future. This will happen irrespective of Milei’s decision to embrace or not to stick to his plan to dollarize the economy wholly.
Serrano claimed that with the challenges in accessing bank dollars and banknotes, stablecoins have become vital for several firms and people. A shift toward bi-monetarism or dollarization, but with reduced dollar accessibility, will make stablecoins more critical.
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Serrano recommended that the Central Bank of Argentina be organized or substituted by an equivalent body instead of being abolished. Without a central authority, ‘an extremely disordered monetary flow’ would prevail, as witnessed in the past.
That is another crucial reason for stablecoins’ utilization in Argentina and other Latin American nations. Argentina’s annualized inflation rose 143% last month, and according to the Chainalysis Global Adoption Index, the nation ranks 15th.