Alfredo Gimenez
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Poor Argentina... 😢
As President Javier Milei tightens currency controls to artificially support the peso ahead of the midterm elections, Argentinians are turning to cryptocurrencies to protect their savings.
A new strategy involves the use of stablecoins to take advantage of Argentina's official exchange rate, which currently values the peso about 7% above the Parallel Market rate, which is what really matters in the real world and is the quote that counts in the crypto market.
The operation works like this: dollars are bought and immediately exchanged for stablecoins. Then, these tokens are exchanged for pesos from the parallel market, which are cheaper. This arbitrage, known as "rulo", can generate a quick profit of up to 4% per transaction, according to cryptocurrency brokers.
In addition to the inherent risks of volatility, profits from crypto in Milei's liberal country are taxed at up to 15% (in Brazil, there is no such tax per transaction).
Frequent operations can also attract the attention of banks, which usually require proof of the source of funds for users making large repeated transfers to avoid money laundering from corruption and organized crime. In Brazil, this control is more difficult due to the opposition from lawmakers like Nikolas Ferreira.
As President Javier Milei tightens currency controls to artificially support the peso ahead of the midterm elections, Argentinians are turning to cryptocurrencies to protect their savings.
A new strategy involves the use of stablecoins to take advantage of Argentina's official exchange rate, which currently values the peso about 7% above the Parallel Market rate, which is what really matters in the real world and is the quote that counts in the crypto market.
The operation works like this: dollars are bought and immediately exchanged for stablecoins. Then, these tokens are exchanged for pesos from the parallel market, which are cheaper. This arbitrage, known as "rulo", can generate a quick profit of up to 4% per transaction, according to cryptocurrency brokers.
In addition to the inherent risks of volatility, profits from crypto in Milei's liberal country are taxed at up to 15% (in Brazil, there is no such tax per transaction).
Frequent operations can also attract the attention of banks, which usually require proof of the source of funds for users making large repeated transfers to avoid money laundering from corruption and organized crime. In Brazil, this control is more difficult due to the opposition from lawmakers like Nikolas Ferreira.
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