Chile has played successfully in maintaining a stable economy in the last few decades. But back in may 2020 the economy contracted by 5.8%, the sharpest decline since 1982. The slump in the economic graphs of Chile, was a result of the social crisis that started in 2019. The economy showed a subtle growth in the financial year 2021.
Now, the citizens of Chile are taking a step towards stablecoins to trigger a potential economic slump. According to our sources based in Chile, the citizens are using stablecoins to shield against the threat of inflation and contribute towards a potential economic slump. This created a window for the crypto trading firms in the country, offering them a raise of 50% in the stablecoin transactions in the last three months.
Chileans Turning The Economy – $USDT & $USDC
In an interview, the country manager at CryptoMarket, Eduardo Pérez de Castro, said the platform witnessed 50% growth in purchase of Tether($USDT) and USD Coin ($USDC).
This trend is a huge opportunity for the users to buy U.S. dollars even without stepping into the financial institutions. The trend is clearly a result of the faltering macroeconomic situation in Chile. The market is facing an extreme rise in the inflation rate of 12.5% which has touched the highest of 28 years. The high-rise in inflation triggered currency downfall, where peso hit a record low – 1045 / per U.S. Dollar. A common Chile citizen is turning to stablecoins in order to save money and create a safe future.
Thoughts on Roll
Such a step from the Chile citizens seems to be an optimistic approach for both the crypto market and for the country’s economy. But what were the reasons for people making such a move? Some experts say it’s the political instability creating social outburst in 2019. And rest claim it to be the instability in the macroeconomic factors in the country.
Source: https://www.thecoinrepublic.com/2022/08/08/chileans-shields-inflation-and-peso-devaluation-using-usdt-usdc/