According to Anna Martynova's article on cryptonews "Argentines began to buy cryptocurrency amid a raging devaluation that plunged the peso to an all-time low."
Prior to Monday's market opening Argentines that we're buying an item that was equivalent in price to $1.00 USD paid only 287.30 Pesos. Immediately on the 14th when trading began that morning POOF! Just like that 21.78% of the People's buying power, the national currency, was gone.
A sudden devaluation of over 21% in a nation's currency can have several negative implications for citizens in the long run. In a year's time, some potential economic consequences could include higher inflation, increased costs of imported goods, reduced purchasing power, and possible financial instability. These factors combined could lead to a decrease in the standard of living for citizens, making it more expensive to afford basic necessities and potentially impacting savings and investments.
A significant currency devaluation can indeed create an environment where crime, forced human trafficking, and black market activities might thrive. The economic hardships caused by devaluation, such as higher inflation and reduced purchasing power, can lead to increased poverty and unemployment. In such situations, some individuals might turn to illegal activities as a means to survive or generate income.
Black market activities could flourish due to the scarcity of goods, higher prices, and the desire to bypass official channels. Additionally, economic instability can create vulnerabilities that criminal organizations exploit, including smuggling, human trafficking, and other illicit trades. However, it's important to note that the relationship between currency devaluation and these negative activities is complex and can depend on various factors including government policies, law enforcement effectiveness, and social condition
There's a global crisis. A fight for survival. A nation's currency's buying power plummets. Do you believe stable coins are a viable option?