More people in Latin America have shown interest in Dai over the previous several months due to the economic troubles aggravated by the coronavirus pandemic. The local news outlet iProUP reported that the trading volume of MakerDAO’s stablecoins was four times during quarantine in Argentina, as it became $20 million daily from $5 million.
This shows that Latin America is moving to the Safety of Dollar-Pegged Stablecoins because of the absolute debt and hyperinflation. Hence, the people chose to deal with the economic crisis by adopting cryptocurrencies believed by many to be the solution to currency devaluation.
iProUP reported that many residents of the region have found solace in the “digital dollar”—the Dai stablecoin. According to MakerDAO, there has been a steady development in Dai momentum in Argentina for some time, but the COVID-19 outbreak led to its explosion.
“Today, interest in Dai is exploding, with trading volumes quadrupling from $5 million before quarantine was imposed to $20 million by early May. At the beginning of 2020, only one exchange in the region offered Dai; today, there are six. Dai has gained incredible traction, which is a remarkable achievement, given that it was barely known in the country two years ago.”
MakerDAO sees this as an awesome development because the people want dollars as they don’t trust the local currency, said Nadia Alvarez of MakerDAO in the Latin American region. Alvarez said people were only interested in Bitcoin two years ago, thereby making it difficult to attract people to Dai.
The quick adoption of Dai happened because of the mainstream appeal of cryptocurrencies, especially with regards to surviving hyperinflation. This led to the popularity of cryptocurrency exchanges and fiat on/off ramps, like Bitso and Buenbit, as well as mobile wallet apps like Argent in the region. The people convert Dai back to their local currency when needed.