Argentina's inflation surged by 37% in just one month! U.S. aid is ineffective, and the public is wildly buying Bitcoin and stablecoins for hedging.

The collapse of the Argentine peso has triggered market panic, with the U.S. pledging "all options" for assistance. However, the Bitcoin community questions the limited effectiveness, as the public has largely turned to USD stablecoins and Bitcoin for self-rescue. (Background: Promoting Libra meme coins is not illegal! Argentina's anti-corruption office states: the president has personal freedom of speech, and he has not committed misconduct.) (Additional context: Circle freezes $58 million USDC related to the Libra case, can the Argentine president escape?) The Argentine peso has plummeted again, pushing this country, long tormented by high inflation and currency depreciation, back to the edge of an economic cliff. On September 19, U.S. Treasury Secretary Scott Benset publicly stated that Washington has "all options for stabilizing the economy on the table," attempting to throw a lifeline to President Javier Milei, whose reforms are on shaky ground. However, the Bitcoin community and local citizens are voting with their funds, flocking to USD stablecoins and Bitcoin (BTC), highlighting that traditional aid mechanisms may not solve Argentina's fundamental problems. Despite intervention from Washington, the peso remains shaky. According to Bloomberg, Argentina's annual inflation rate in August was about 36.6%, and the peso fell another 4.5% against the dollar within a week. To defend the exchange rate, the central bank sold about $1.1 billion in foreign exchange over three days, reducing official reserves to around $20 billion. Milei not only lost support in local elections but also faces investigations into family scandals, causing a collapse in investor confidence and capital flight. The U.S. Treasury proposed possible actions such as currency swaps with the Federal Reserve, directly purchasing pesos, or buying bonds through a currency stabilization fund. Following the news, according to the Financial Times, the Merval index surged over 9% in dollar terms at one point, but the market quickly returned to a wait-and-see stance, as the exchange rate over the past year shows that the Argentine peso has depreciated by 30% against the dollar. Bitcoin community: Aid stops the bleeding but does not cure the disease. Saifedean Ammous, author of "The Bitcoin Standard" and economist, directly pointed out that Milei's policy is a "debt and inflation Ponzi scheme" that deepens the wounds. He criticized the government for recently pushing public bond interest rates up to 88% just to barely sell, while the money supply continues to expand. Ammous wrote in a community post: "The continual collapse of the peso is the most direct evidence of policy failure." Bitcoin supporters have not forgotten Milei's past controversial stance on the crypto project LIBRA, including previously endorsing it and then disbanding the investigative team. They believe that without a firm decision to cut spending and tighten the money supply, any external assistance will eventually be diluted by inflation. Citizens are turning to cryptocurrencies for hedging. The dual uncertainty in politics and finance has led citizens to choose self-rescue. On September 14, the daily purchase volume of USD stablecoins on the crypto trading app Lemon reached a new high since 2024. Ignacio Jimenez, the platform's business manager, revealed that there has been a surge in demand from users for stablecoins for international payments, remittances, and DeFi. The appeal of Bitcoin has also risen simultaneously. Jimenez pointed out that the number of users holding Bitcoin on the Lemon platform has surpassed that of stablecoin holders. Argentina's crypto adoption rate leads Latin America, with some areas of Buenos Aires even able to pay property taxes in cryptocurrency. Stablecoins are used for short-term settlements, while Bitcoin serves as a long-term store of value, together forming a new line of defense for citizens against high inflation. Washington's assistance has provided Argentina with a brief respite, but what truly determines the fate of the peso remains whether domestic reforms can be implemented. If Milei cannot seize the time to cut spending and tighten the money supply, external liquidity will eventually dry up. At the same time, Bitcoin and stablecoins have taken root on the streets and smartphone screens, becoming realistic options for citizens to preserve value. This tug-of-war between traditional finance and digital assets will continue to test the credibility of national policies and provide a mirror for the global market to observe how high-inflation economies can rescue themselves. Related reports: Paying for services? LIBRA founder: I bribed Argentine President Milei's sister to make him do whatever I wanted. Argentina's unconventional anti-inflation move: stop issuing pesos! The Bitcoin fanatic president Milei embraces BTC's reform progress? Argentina's cryptocurrency adoption rate is the highest in the western hemisphere! The economic predicament behind the frenzy of buying USDT. <Argentina's inflation surged 37% in a single month! U.S. rescue is ineffective, and the public is frantically buying Bitcoin and stablecoins for hedging> This article was first published in BlockTempo, the most influential blockchain news media.