News

Chileans Switch To Stablecoins Because Of Inflation

Latin America’s steadiest economy in the last three decades is suffering a slump. Locals are turning to crypto, especially stablecoins for protection.

With a lifestyle familiar with the most stable economy in Latin America, residents of Chile are turning to stablecoins to protect their assets from recent record inflation and the increasing devaluation of the peso. In the last three months, local crypto exchanges have seen a 50% increase in stablecoin transactions.

During the second quarter of 2022, CryptoMarket, a Chile-based exchange with 200,000 members in the nation, saw a 50% spike in purchases of the two most popularly used stablecoins, Tether (USDT) and USD Coin (USDC).

CryptoMarket Chile country manager Eduardo Pérez de Castro said:

“Today, stablecoins represent 30% of users’ total purchases, and what they mostly choose to buy if it is their first time using the platform.” 

Buda.com, one of Chile’s first crypto exchanges to start in 2015, has also noticed the increased interest in stablecoins.

The platform’s stablecoin market share increased from 11% in June to 20% in July. USDC is the third-most-traded currency on the site, after only Bitcoin (BTC) and Ethereum (ETH).

Jazmín Jorquera, chief operating officer at Buda, which has more than 500,000 users and operations in Chile, Argentina, Peru, and Colombia presented:

“We see this as a huge trend and something users are taking as an opportunity to buy U.S. dollars easily without having to go to a bank or exchange house.”

In June, the country’s year-to-year inflation rose to 12.5%, the highest record in 28 years. One month later, its peso currency hit a record low of 1,045 per U.S. dollar, 3.7% in one day, forcing the central bank to make a $25 billion intervention in the foreign exchange market to stop a higher devaluation.

OrionX, a Chile-based exchange with more than 100,000 users and operations in Peru and, soon, in Mexico, saw USDT become the platform’s second-most-traded currency during the last three months. Joel Vainstein, the co-founder of the exchange, said:

“The common Chilean citizen is turning to stablecoins to save money and conserve value.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

17 minutes ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

1 hour ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

1 hour ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

2 hours ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

3 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

4 hours ago

This website uses cookies.