- Argentine crypto exchange increased to 18% as it is always around 2%.
- The people have bought more DAI stablecoin to protect themselves.
Argentine economy minister Martin Guzman resigned his post on Saturday. After he resigned the people are investing in the stablecoins three times more. Due to this inflammation that happened in between, the minister has lost to fulfill his first goal.
As he took charge as minister on December 10, 2019, Guzmán said that his main goal when taking the job was to calm the economy and to do that it was necessary to resolve the problems of the unsustainable external debt that overwhelm the state, as well as all of Argentina.
According to the three major cryptocurrency exchanges the consumers are trying to protect themselves against the potential loss of the Argentine Peso (ARS). Those dollar values have fallen over the past year as inflation has increased.
After the resignation of the minister, the stablecoin value in peso rose from ARS 245 to ARS 280 over a weekend. After the appointment of new minister Silvina Batakis on Sunday it rose to ARS 303 per coin.
The government has faced hard purchasing dollars as the peso value has dropped against the dollar and Argentina has storage of dollars which saw inflation of 60% and the economist is expecting that it is going to be worse. And work has been stopped by the truck drivers who have interrupted the economic activity, and ports of grains have also come to an end which is one of the main imports of Argentina.
According to Buenbit, the exchange platform recorded that there is an increase of 300% on Sunday as compared to last week. Most people have applied for loans to the Argentine peso and purchased more DAI for protection.
Due to the lack of the price reference for the U.S.dollars, the Argentine exchange increased to 18% as it is always around 2%.
Andrés Vilella Weisz, head of trading and strategy at the Argentina-based crypto exchange Lemon Cash states:
“Due to demand and without a reference replacement price, prices rose and spreads widened,”