Argentines Flock to Stablecoins Amid Milei Election Victory

As Argentines headed to the polls on Sunday, citizens concerned about potential election outcomes purchased hoards of U.S. dollar stablecoins throughout the weekend. Facundo Werning, LATAM head for stablecoin issuer Agora and former Tether expansion manager for Argentina, reported seeing a “notable increase in volume across the USD stablecoin to [Argentine peso] trading pair,” with conservative estimates placing Sunday’s trading volume at $13.4 million. The South American crypto app Lemon attracted its third-highest single-day volume of all time on Sunday, with the platform recording its highest-ever hour of volume at 9pm local time—precisely when election results were announced.

Santiago Vivanco, an Argentine who works in finance, told Decrypt that he doesn’t know anyone who went into the election with large amounts of money in the Argentine peso. This sentiment was reflected across prediction markets, where the chances that left-wing party Unión por la Patria would win the most seats peaked at 55% on Polymarket. Vivanco anticipated the peso would crash if Unión por la Patria had won, claiming its left-wing economic policies would be detrimental to the currency’s value.

Exchange rates in Argentina operate through multiple channels, creating a complex financial landscape. The “official rate” available at banks comes with strict limitations—citizens can withdraw only $200 monthly. The unofficial “blue dollar” offers improved exchange rates at street exchanges, while the “crypto dollar” is determined by supply and demand via stablecoins. A crucial distinction lies in operational hours: while official banks and unofficial street exchanges shut during off-hours, the crypto dollar market never stops operating.

This 24/7 accessibility made the crypto dollar the primary gauge for tracking the peso’s value during the weekend elections. “This behavior turned the crypto dollar into something more than just a savings tool,” a spokesperson for Lemon told Decrypt. “It became a real-time thermometer of Argentina’s economic and political pulse when the traditional market is offline.” As expectations shifted, votes were counted, and results were revealed, the crypto dollar fluctuated dramatically in valuation, with Argentine citizens swapping pesos for stablecoins and stablecoins for pesos in attempts to maximize value from their volatile local currency.

President Javier Milei’s party secured a surprise but decisive victory in the nation’s midterm legislative elections, defying expectations amid declining approval ratings tied to corruption scandals and his radical economic plans. The market reaction was immediate and pronounced. A Lemon dashboard tracking the election showed the local currency hit a low exchange rate of 1,572.50 ARS per crypto dollar at approximately 2pm local time on Sunday. This quickly reversed as results became apparent, with the peso strengthening to a high of 1,350 ARS per dollar by 10am on Monday.

“Over the weekend, we initially saw the crypto dollar rise dramatically, and as results came in on Sunday, we saw it plummet against the peso,” Werning told Decrypt. The Lemon spokesperson added that this shift “signals optimistic market sentiment.” The Argentine peso had hit a record low of 1,491.50 pesos per U.S. dollar on Friday, per Reuters, despite a $40 billion bailout package from former President Donald Trump, who had stated the U.S. would not “waste our time” helping Argentina if Milei had lost.

The dramatic market movements illustrate how Argentine citizens have adapted to their country’s economic instability by leveraging cryptocurrency infrastructure. The crypto dollar not only served as a hedge against potential currency collapse but also provided real-time insight into market sentiment as political fortunes shifted. While the peso remains notoriously unstable, the election outcome and subsequent market reaction suggest cautious optimism about Milei’s ability to stabilize Argentina’s troubled economy.