![]() ![]() "In general, crypto adoption tends to be higher in countries with capital restrictions, financial instability, and political instability," analysts at K33 Research wrote. Trading volume for the USDT-Turkish lira pair reached a multi-month high last week, driven by the weakening of the Turkish currency and the upcoming landmark presidential and parliamentary elections, Kaiko analyst Dessislava Aubert said. "They want to potentially hold additional assets pegged to a stronger currency, so, things like USDC or USDT or anything pegged to a stronger currency like the U.S. "Folks, whether they're on the retail side or institutional side, are thinking about how can we hedge against currency devaluation," said Ehab Zaghloul, chief research scientist at Tribal Credit, a digital payments platform for startups in emerging markets. dollar or gold, giving investors an alternative to scarce dollars. Much of the safe-haven buying has been of stablecoins such as USD Coin (USDC) and Tether (USDT), which are crypto tokens pegged one-to-one to a traditional asset such as the U.S. Argentina's peso trades around 464 per dollar in the black market, more than double the official exchange rate of 222. ![]() The lira and peso have been plunging and are at record lows. Turkey's annual inflation was 50.51% in March, Argentina's was even higher at 104%. What's common to Turkey and Argentina besides their pole positions in crypto adoption is high inflation, which has led to crumbling currencies and capital controls to deter local residents from taking money out. Ownership of digital currencies in Turkey was the highest in the world at 27.1% followed by Argentina at 23.5% - well above global crypto ownership rate estimated at 11.9% - according to data from research firm GWI. May 2 (Reuters) - Can inherently volatile cryptocurrencies become safe-havens? Apparently they can in some parts of the world, such as Argentina and Turkey, where soaring prices and tumbling local currencies have forced people to seek refuge in digital coins. ![]()
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