Guillermo Escudero: “Argentines are secretly buying stablecoins in crypto caves”

An expert on strategic alliances at CryptoMarket explained that amidst economic uncertainty and hyperinflation of the Argentine peso, citizens of the country are gravitating towards underground cryptocurrency exchanges known as crypto caves in Argentina.

According to Guillermo Escudero, most Argentines clandestinely purchase stablecoins that are pegged to the US dollar.

“Crypto caves are peer-to-peer exchanges that operate in the black market. Typically, they are inconspicuous locations where individuals can meet by appointment, with prior confirmation of the date and time. These crypto caves facilitate the illicit exchange of paper fiat currency for stablecoins. The most popular stablecoins are the ones tied to Tether,” explained the expert.

Guillermo Escudero affirmed that utilizing the services of crypto caves enables Argentine citizens not only to exchange their continuously depreciating national currency for the equivalent value in dollars but also to secure a significantly more advantageous exchange rate than what banks offer, thereby circumventing strict exchange controls.

In December, the official exchange rate stood at 365 Argentine pesos per dollar, but it surged to 829 Argentine pesos after Javier Miley assumed the presidency. In 2023, Argentina’s inflation rate soared to an alarming high of 211.4% – the highest in 32 years.

Previously, Interior Minister Guillermo Francos announced that the government would no longer require citizens to pay a 15% tax on undeclared crypto assets exceeding $100,000.