The dollar that is not in the bank: seven uses of stablecoins and the risks of holding them

Of every 100 pesos traded against cryptocurrencies in Argentina, more than 94 end up in stablecoins, those digital currencies tied to the value of the dollar that we have been discussing for years in this column. This data comes from a study published this week by the a16z crypto fund based on data from the firm Artemis, with a twelve-month window closing on July 31, 2026, and places our country at the top of the global ranking: the Argentine peso marks 94.3%, above the Mexican peso (84.4%) and the Brazilian real (74.9%), and at a vast distance from the Japanese yen (0.3%). When an Argentine enters an exchange (a cryptocurrency trading platform), in the vast majority of cases, what they buy is dollars. The most interesting aspect appears when one looks at the evolution. Adoption remained strong even after monthly inflation fell from the peak of 25.5% to the 2.1% reported by INDEC for July of this year, and even after restrictions on buying dollars at the bank were lifted in April 2025. The two emergency reasons that explained the phenomenon weakened, yet the behavior continued, suggesting that stablecoins have been incorporated as a tool for everyday use. However, many savers still do not fully understand what they are or what they are for. Below, we will explore together the seven most common uses of stablecoins, as well as what to review before taking the first step. Let's get started!

++A dollar traveling through a network++

A stablecoin is a cryptocurrency designed to always be worth the same as a dollar, and to maintain that parity, the issuer keeps reserves (generally U.S. Treasury bills and bank deposits) that back each unit in circulation**. The two largest are USDT from Tether and USDC from Circle: together they account for 88.6% of a market that, as of August 31, 2026, hovers around 290.4 billion dollars.** The difference with bitcoin is one of purpose, and it is worth clarifying because in popular imagination, everything crypto is lumped together. Bitcoin is a volatile asset whose price depends on supply and demand**. Stablecoins are designed precisely not to fluctuate, and their added value lies in how they move: they can be transferred 24 hours a day, 7 days a week, without banking hours or holidays; they travel abroad without correspondent banks involved; and they can be stored in self-custody (that is, in a wallet whose keys you control, without any intermediary)**. Think of them as bearer dollars that, instead of being in a drawer, live on a network.

++The seven most common uses++

If a stablecoin is worth exactly the same as a dollar, the logical question is where its added value lies. The answer is in what you can do with that dollar, so let's look at the seven most common uses. 1) Dollarization with immediate liquidity. This is the most obvious use and explains most of that 94.3%. Buying USDT or USDC transforms pesos into an asset denominated in dollars without the need to open a foreign currency bank account, and with the operational advantage of being able to move that balance at any time. This makes sense even with inflation significantly lower than in previous years, because the risk covered also includes a potential exchange rate jump. 2) Receiving income from abroad. In my opinion, this is the structurally most interesting use. Those who work for a foreign company, serve international clients, or invoice through freelance platforms can receive USDC directly in a wallet, with fewer intermediaries (and thus lower fees) along the way, and can also separate two decisions that are usually tied in the banking circuit: where you receive and when you invest. 3) Sending money abroad. An international bank transfer involves correspondent banks, cut-off times, fees, and settlement times, while a stablecoin moves from one wallet to another through the network. But be careful: it doesn't always turn out to be cheaper, because the final cost depends on the network you use and the entry and exit channels (the conversion from pesos to crypto and from crypto to the destination currency). 4) Paying while traveling. There are international cards funded with stablecoins, so the balance remains dollarized until the moment of consumption. For Argentines traveling, the difference is striking: at the time of writing this note, the card dollar was at 1,995.50 pesos while the crypto dollar was trading around 1,597 pesos. 5) Transferring between individuals. Someone sells a car and agrees to be paid in USDC, an Argentine living temporarily abroad sends money to family, two partners settle a debt in digital dollars. In all these cases, the transaction is resolved between two wallets, and for small amounts, the operational simplicity is usually much higher, always keeping in mind that this does not exempt one from the corresponding tax obligations. 6) Having defensive liquidity within the crypto ecosystem. For those already operating with cryptocurrencies, the stablecoin acts as the cash position of the system. Instead of converting to pesos or bank dollars every time they want to lower risk, the investor shifts part of their portfolio to stablecoins and then re-enters: a portfolio 100% in bitcoin can shift to 60% bitcoin and 40% in stablecoins in a scenario of greater uncertainty, and revert when the outlook changes, without leaving the ecosystem. 7) Earning yield on digital dollars. Here begins the area that requires more caution, because stablecoins can be lent in decentralized finance protocols, placed in liquidity funds, or deposited in platforms that offer a rate. If someone offers you 8%, 10%, or 15% annually in dollars, the obligatory question is where exactly that yield comes from and what risk you are assuming in return , because a stablecoin is not a Treasury bond or a bank deposit with a guarantee: there are credit risks, counterparty risks, liquidity risks, smart contract risks, and regulatory changes. Therefore, I would not put this use in the same category as the previous six: having USDC and lending USDC for a rate are two completely different decisions.

++3 Things to Consider Before Taking the First Step++

The first thing to consider before diving in is the entry price. At the time of writing this note, the crypto dollar was trading around 1,597 pesos compared to 1,535 for the official dollar, a premium of about 4% which reflects the cost of that infrastructure and is worth keeping in mind if the plan is to enter and exit frequently. The second is the risk of the currency itself. In March 2023, when Silicon Valley Bank collapsed, USDC traded below 87 cents because Circle had $3.3 billion of its reserves there, around 8% of the total. The parity recovered within a few days, but it became clear that a stablecoin is worth what its reserves are and what the institution that holds them can withstand. The third is where you operate. In Argentina, virtual asset service providers must be registered in the registry created by the National Securities Commission in March 2024, and those not listed there cannot operate legally in the country. Checking this before opening an account takes five minutes.

++Conclusion++

Stablecoins have solved the problem of dollar circulation, which is something the Argentine financial system never fully resolved, while leaving intact the issue of their yield, which still depends on what you do with those dollars once you have them. That 4% premium is what Argentine savers are willing to pay for a dollar that moves 24 hours a day. For those just starting out, the suggestion is simple: try with a small amount and use it to solve a specific problem you already have, whether it's receiving money from abroad, sending money out, or dollarizing an excess, and then gradually increase your exposure as you feel more comfortable. We'll continue next week with more personal finance and investment material.