• Turkey and Argentina are leading the global trend in digital currency ownership due to high inflation rates.
• Citizens are turning to stablecoins like USD Coin and Tether for stability and a reliable alternative to scarce dollars.
• Skyrocketing inflation is driving citizens to search for protection against currency devaluation.
Rising Inflation Rates in Turkey and Argentina
Turkey and Argentina have some of the highest annual inflation rates in the world, with 50.51% and 104% respectively. These tight capital controls make it difficult for citizens to obtain physical currency, prompting them to explore alternative means of safeguarding their assets. As a result, digital tokens are becoming increasingly popular as a safe-haven asset.
Citizens Turn To Stablecoins For Stability
GlobalWebIndex (GWI) found that 27.1% of people in Turkey and 23.5% in Argentina own digital currencies as a way of protecting their wealth from currency devaluation and rising prices. Stablecoins such as USD Coin (USDC) or Tether (USDT) maintain fixed values against traditional assets like gold or the US dollar, providing individuals with a reliable source of protection against volatile markets.
Skyrocketing Inflation Drives Search For Protection
Ehab Zaghloul, research scientist at Tribal Credit, told Reuters that people in Turkey and Argentina are looking for ways to protect themselves from devaluation by potentially holding additional assets pegged to stronger currencies like USDC or USDT. This shows how skyrocketing inflation is driving citizens towards stablecoins as an attractive option for preserving their wealth amidst turbulent economic conditions.
Stablecoins Becoming A Popular Safe-Haven Asset
As more individuals become aware of the benefits associated with stablecoins, they are increasingly being seen as an attractive safe-haven asset during times of economic instability caused by high levels of inflation. This trend is particularly evident in countries like Turkey and Argentina where capital controls have made it difficult for citizens to access physical currency which has driven them towards alternative sources of sheltering their savings such as digital tokens backed by fiat currencies like the US dollar or gold reserves.
In conclusion, high levels of inflation have prompted individuals living in Turkey and Argentina to turn towards digital tokens such as stablecoins as a way of protecting their wealth from devaluation caused by volatile markets conditions worldwide . Stablecoins provide citizens with a reliable source of security against uncertain economic times owing to its fixed value backed by fiat currencies or gold reserves which makes it more desirable compared other cryptocurrencies