**Argentines Turn to Dollar Stablecoins Amid Midterm Election Turmoil**
On Sunday, as Argentina headed into crucial midterm elections, locals swapped their unstable pesos for U.S. dollar stablecoins, anticipating a sharp decline in the Argentine peso (ARS). The election, seen as a make-or-break moment for President Javier Milei, unfolded amid his declining approval ratings linked to corruption scandals and controversial economic plans.
### Surge in Stablecoin Usage During Elections
As election results became clearer, a Latin American crypto app recorded its highest-ever trading volume in a single hour, coinciding with the peso strengthening against the dollar. Facundo Werning, LATAM head for stablecoin issuer Agora and former Tether expansion manager for Argentina, revealed to Decrypt that there was a “notable increase in volume across the USD stablecoin to [Argentine peso] trading pair,” estimating a conservative $13.4 million in trading volume on Sunday alone.
Similarly, the South American crypto app Lemon experienced its third-highest single-day volume ever, including the highest hourly volume at 9 p.m. local time, when election outcomes were officially announced.
### Peso Volatility and Market Reactions
The Argentine peso is notoriously unstable. Just days before the election, it hit a record low of 1,491.50 pesos per U.S. dollar on Friday, according to Reuters, despite a $40 billion bailout package from former U.S. President Donald Trump. However, many Argentines believed the peso would have plummeted even further if Milei’s right-wing party, La Libertad Avanza (LLA), had not secured the most seats.
Milei remains a divisive figure in Argentina due to his radical economic proposals and connections to corruption scandals, including involvement with the notorious LIBRA meme coin. His dwindling approval rating made this election critical both for his political future and the nation’s economic outlook.
### Public Sentiment Reflects Market Behavior
Santiago Vivanco, an Argentine finance professional, told Decrypt that no one he knows entered the election holding large amounts of Argentine pesos. Meanwhile, betting markets, like Polymarket, showed the left-wing party Unión por la Patria peaking at a 55% chance of winning the most seats.
Vivanco anticipated a peso crash if Unión por la Patria prevailed, attributing this to their left-wing economic policies, which he believed would harm the peso’s value. Former President Trump also publicly stated that the U.S. would not “waste our time” supporting Argentina if Milei lost, amplifying concerns.
As a result, many citizens bought USD stablecoins over the weekend to hedge against a potential peso collapse.
### The Crypto Dollar as a Real-Time Economic Indicator
Exchange rates in Argentina are complex. One key difference between official bank rates, unofficial street rates, and crypto dollar rates is that crypto markets operate 24/7. While banks and street exchanges close during off-hours, especially on weekends, crypto dollars never stop trading.
This continuous operation turned the “crypto dollar” into more than just a savings tool. A Lemon spokesperson told Decrypt, “It became a real-time thermometer of Argentina’s economic and political pulse when the traditional market is offline.”
### Market Reactions During Election Night
Throughout election night, the crypto dollar’s value fluctuated noticeably. Citizens actively swapped pesos for stablecoins and vice versa, aiming to maximize their returns amid the peso’s volatility.
Lemon’s election dashboard showed the peso hitting a low exchange rate of 1,572.50 ARS per crypto dollar around 2 p.m. local time on Sunday. As results became clearer, the rate improved dramatically, reaching 1,350 ARS per dollar by 10 a.m. on Monday.
Werning summarized these movements: “Over the weekend, we initially saw the crypto dollar rise dramatically, and as results came in on Sunday, we saw it plummet against the peso.” The Lemon spokesperson added, “This signals optimistic market sentiment.”
### Conclusion: Peso Strengthens Following Milei’s Victory
Market reactions indicate optimism following Milei’s surprise yet decisive victory in the midterm legislative elections. The Argentine peso appeared stronger on Monday compared to its close on Friday, reflecting renewed confidence among investors and citizens alike.
As Argentina navigates a politically charged landscape, the growing role of stablecoins as both a hedge and an economic indicator highlights the evolving intersection of traditional finance and digital assets in volatile markets.
https://decrypt.co/346184/argentine-stablecoin-use-surged-ahead-of-president-mileis-midterm-election-win
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