Inflation in Argentina was almost 80% in August compared to the previous year. Due to the high inflation in the South American country, and the depreciation of the Argentine peso, an Argentine athlete has decided for the first time to be paid 100% in cryptocurrencies. Guido Canetti chooses to be paid out in the stablecoin USD coin (USDC).
‘El Ninja’ prefers crypto
Cannetti is an Argentine mixed martial arts athlete who participates in the Ultimate Fighting Championship (UFC). According to Cannetti, aka “El Ninja,” this is better for his future. A salary in a stablecoin spares him the volatility and depreciation of the Argentine peso.
Cannetti will receive his salary through Vibrant, a digital wallet developed by Stellar (XLM). The digital wallet was specially developed by Stellar for Argentines who have been struggling with sky-high inflation for some time.
Argentine inflation drives crypto adoption
Analysts in Argentina expect inflation to rise further before a decline sets in. The Argentine central bank forecast inflation of no less than 95% for this year, but analysts fear it could be even higher.
Many Argentines are turning to crypto as their pesos are depreciating. More than half of all Argentines bought crypto this year, according to a recent survey, and 27% of the population does so regularly. At the end of last year, only 12% of Argentines still bought crypto. The survey also found that inflation protection is the primary reason for purchasing cryptocurrencies.
Last July, an abrupt resignation of Argentina’s finance minister resulted in a run on stablecoins. Following the news of the layoff, the Tether stablecoin (USDT) traded at a premium of 116% premium against the USD/ARS (Argentine peso) rate.
Argentina is one of the global leaders when it comes to crypto adoption. A recent survey by analytics company Chainanalysis places Argentina at number 13. Vietnam is at the top this year.