The financial disaster in Latin America, exacerbated by the COVID-19 pandemic, has brought on curiosity in Dai to skyrocket up to now couple of months.
In response to a report from native information outlet iProUP, the buying and selling quantity of MakerDAO’s stablecoins quadrupled throughout quarantine in Argentina from $5 million to $20 million each day.
Latin America Flocks to the Security of Greenback-Pegged Stablecoins
Hit with sovereign debt and hyperinflation, international locations in Latin America have entered the COVID-19 pandemic already struggling economically.
One of many ways in which the struggling international locations have been coping with the disaster has been by way of the adoption of cryptocurrencies, which many imagine are their ticket out of foreign money devaluation.
In response to a report from Argentinian tech information outlet iProUP, many residents of the area have discovered solace within the “digital dollar”—the Dai stablecoin.
MakerDAO stated that Dai momentum has been steadily constructing in Argentina for fairly some time, however exploded as soon as the nation was hit with the COVID-19 outbreak.
An unnamed cryptocurrency exchange advised iProUP that curiosity in Dai quadrupled after quarantine was launched in Argentina—buying and selling quantity surged from $5 million per day to a whopping $20 million per day.
“At the beginning of 2020, only one exchange in the region offered Dai; today, there are six,” MakerDAO stated.
MakerDAO Says Dai Has Gained Unbelievable Traction
On condition that Dai was “barely known” within the area two years in the past, MakerDAO, the corporate behind the dollar-pegged stablecoin, stated that this was an unbelievable achievement.
“Many Latin Americans want dollars because they don’t trust the local currency,” stated Nadia Alvarez, MakerDAO’s enterprise growth affiliate for the Latin American area.
She defined that on the time, Latin America was solely excited about Bitcoin, which made it tough to draw individuals to Dai.
Nonetheless, because of the mainstream attraction of cryptocurrencies, particularly in terms of surviving hyperinflation, different cash such because the dollar-pegged Dai have been shortly adopted.
Crypto exchanges and fiat on/off ramps, comparable to Bitso and Buenbit (Argentina’s main Dai exchange), are rising in reputation all through Latin America, as are cell pockets apps comparable to Argent, MakerDAO stated.
Dai has additionally turn into a preferred retailer of value in Argentina, with individuals changing Dai again to their native foreign money as they want it.
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