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Argentines can now buy dairy products with the USDT stablecoin at the Buenos Aires Central Market, one of the largest suppliers of fruits and vegetables in Latin America. The move was made possible through a partnership between the stablecoin issuer Tether and the KriptonMarket platform.
The collaboration will provide companies with the ability to accept and pay bills with USDT, as well as pay a percentage of employee salaries with the stablecoin. According to the City of Buenos Aires, the Central Market serves over 12 million people a month and is home to over 500 wholesale companies. It also employs over 2,000 people.
The partnership will also reduce intermediary costs as well as provide users with a payment method that is pegged to the US dollar and is therefore less subject to market fluctuations, Tether said in a statement shared with Cointelegraph.
Cryptocurrency adoption in Argentina is booming due to hyperinflation and the devaluation of the fiat peso. The inflation rate in April rose to 108.8% year on year in this Latin American country, remaining at its highest level since 1991 after rising 104.3% in March. On May 15, Argentina’s central bank raised its benchmark interest rate to 97%, but tight monetary policy does not seem bold enough to keep prices down.
“With the ongoing devaluation of the national currency, the people of Argentina need solutions to achieve their own financial freedom. If we can contribute to the well-being of the entire country with the cutting-edge technology enabled by blockchain, we will be one step closer to ending the fight against financial discrimination,” said Paolo Ardoino, CTO of Tether.
In a recent interview with Cointelegraph, Daniel Fogg of IOV Labs, founder of smart contract platform Rootstock, said that emerging markets are leading the way in crypto adoption as people view cryptocurrencies as a safe haven from macroeconomic turmoil. “For me, if you want a glimpse into the future of what I hope cryptocurrency will be, it exists today in Turkey, Colombia, Nigeria, Argentina. Today it is not in the United States or in the UK, ”he said.