Amid Argentina’s inflation woes, residents turn to ‘crypto caves’ and steer clear of Bitcoin.

In Argentina, amidst soaring inflation, locals are turning to clandestine peer-to-peer crypto exchanges, known as “crypto caves,” to acquire U.S. dollar stablecoins while avoiding Bitcoin due to perceived volatility.

These underground exchanges operate discreetly in hidden locations, providing an alternative to traditional banking channels hampered by strict currency controls. Guillermo Escudero, CryptoMarket’s strategic alliances manager, describes these spaces as secretive meeting spots where individuals can exchange their local fiat currency for cryptocurrencies, predominantly USDT, at more favorable rates.

The emergence of crypto caves traces back to the 1980s when Argentina imposed currency controls, prompting the rise of unofficial exchange rates, such as the “blue dollar.” Currently offering 1,115 pesos for $1, these clandestine exchanges provide locals with an avenue to navigate the country’s economic instability.

Despite Argentina’s recent move to legalize Bitcoin for contracts, many locals remain cautious. María Fernanda Juppet, CEO of CryptoMarket, emphasizes the risks associated with conducting business transactions in Bitcoin amidst the country’s high inflation environment. Instead, stablecoins like USDT on the Tron network are favored for their stability and minimal conversion requirements.

In conclusion, the preference for U.S. dollar stablecoins over Bitcoin reflects Argentines’ strategic approach to safeguarding their assets amid economic uncertainty, highlighting the evolving landscape of digital finance in the face of inflationary pressures.