Coinbase is cutting off direct fiat connections to Argentina, impacting access to stablecoins amid high inflation. The exchange will halt peso-to-stablecoin conversions and local bank transfers starting January 31, giving users 30 days to withdraw funds.

Argentine users seeking to exchange devalued pesos for USDC face a barrier due to Coinbase’s decision, although the company plans to reassess its strategy for a more sustainable product.

Stablecoin adoption is crucial in Argentina, with up to 80% of crypto transactions involving stablecoins used for savings and international payments.

Coinbase’s focus on USDC clashes with the dominance of Tether’s USDT in Argentina, causing a strategic mismatch and hindering everyday savers’ ability to exit the peso economy quickly.

The loss of fiat connections in Argentina poses challenges for Coinbase, potentially limiting its utility in a country reliant on seamless banking links. President Javier Milei’s efforts to promote Argentina as a digital finance hub face complications with this move.

Read more at Yahoo Finance: Coinbase Blocks USDC Stablecoin Services in Argentina