Argentina athlete Guido Cannetti of the world’s leading mixed martial arts competition Ultimate Fighting Championship (UFC) announced that he would would be paid in full in stablecoin USDC.
He becomes the first UFC athlete in Argentina to use a cryptocurrency stablecoin for salary.
According to Bitwage – the global leader in Bitcoin, cryptocurrency, and stablecoin payroll with services across invoicing and benefits services. Guido Cannetti will receive his USDC stablecoin payment via Stellar Network on Vibrant.
Stellar Network on Vibrant is a wallet application developed by the Stellar team specifically for Argentines experiencing inflation.
According to the official inflation data released by Argentina earlier, the inflation rate in August soared to 78.5% year-on-year, a new high in 30 years, and the month-on-month increase reached 7%. The inflation rate is expected to rise by nearly 95% by the end of this year.
The central bank has raised interest rates by a total of 3,700 basis points (37%) this year but has fallen into the dilemma of “no one dares to save money”.
Canneti said the stablecoin could hedge against local currency fluctuations and depreciation.
In a statement released by Bitwage, Canneti said that:
“I am getting paid in USDC because it is safer for my future.”
Due to persistent inflation, the devaluation continues to weaken the Argentine peso (ARS). Argentines are reportedly buying two to three times the normal amount of stablecoins.
Depending on different regulations, the adoption of cryptocurrencies is expected to continue to rise in Argentina, as cryptocurrencies are seen as a hedge against cyclical economic crises such as hyperinflation, recessions, and repeated currency devaluations.
51% of Argentinian consumers have purchased cryptocurrencies, with 27% of them buying cryptocurrencies on a regular basis, up from 12% at the end of 2021, according to Americas Market Intelligence’s April statistics.
Argentines have been seeking refuge in digital assets, even though the country has recently halted financial institutions’ crypto operations.
Image source: Shutterstock