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Bitcoin Blue is Here: How the Unofficial Exchange Market Is Changing to Adapt to the Crypto Revolution

U.S.A.Bitcoin Blue is Here: How the Unofficial Exchange Market...

Stock photo Illustration of representation of bitcoin. October 19, 2021. Reuters / Edgar Su /

Finance companies and “cavemen” that support informal operations in different parts of the country have been well suited to the times. Smaller customers created a new demand: they no longer want to save not only in dollars, but they also want to buy bitcoin, ether, and other cryptocurrencies. Specially, stable coins They are the most common. And, even with older clients, you still use them exclusively for international movements.

The activity is outright illegal, but its development reflects the size of the challenges faced by all countries’ exchange regulations, and especially the very strict Argentine regulations. Regulatory capacity may be practically zero depending on new technologies.

The crypto star of this free market is called Tether or more commonly USDT. It is the most widespread stablecoin in the world, the largest by market capitalization. Argentines who resort to the informal exchange market prefer it precisely because it is stable: it follows the value of the dollar. One USDT costs $1. And it’s the star because it serves, to some extent, as a substitute for the physical ticket.

“The biggest customers for many years, handle everything from tickets. But now there are almost no young customers. Young people have become a lot more autonomous, they handle cryptocurrencies on their own. And more and more, they allow us to buy USDT or buy USDT. Ask to sell”, says the MD, a money changer with decades of experience who travels the capital and western region on motorcycles, serving customers for “delivery” of free dollars.

As they point out, these customers want it as a way to enter and exit the crypto market. They have this method, they explain, by not using bank accounts to put money into Binance and other exchanges or directly into their crypto wallets, without leaving any traces traceable by AFIP.

“When they need to buy or use something saved in cryptocurrencies and they need pesos for that, they call us. They are in a different worldSays MD, who claims to have seen a unique change in the parallel market, blue or whatever, with more than 60 years being baptized into the Argentine currency crisis.

The inclusion of cryptocurrencies in the informal market does not only reach small service payment businesses that operate with dollars behind authorities. It also makes great strides in the city’s financial companies in the city center of Buenos Aires, where the largest amounts of free dollars have been operated for decades. And from where the price for the whole market is decided.

It came, the exchange traders explained, because it simplified a historical service provided by finance companies: cable. By means of “cables” the caves allow their customers to keep their currency outside the country. There is cable to Uruguay, to the United States, anywhere. The operation is carried out without transferring physical money: the customer leaves his dollars in the Buenos Aires financial company. And another financier at the destination puts in his own dollars to distribute the cable. Of course, the other party receives a lesser amount than what was sent. This is the cost of the cable and, with these compensations, the two ends of operation make their difference.

The crypto star of this free market is called Tether or more commonly USDT.  It is the most widespread stablecoin in the world
The crypto star of this free market is called Tether or more commonly USDT. It is the most widespread stablecoin in the world

Professionals selling services overseas found it a way to collect jobs without going through the formal market. In this way, they get $200 per dollar instead of the $100 that an exporter of goods would get in the formal market. The Central Bank is aware of this and that is why it has been using the foreign exchange penal law in recent months: bypassing the formal market to collect exports of services with fines and even prisons. is also punishable.

But the size of the exchange rate difference, almost 100%, many people use it the same way. And the new tax rules, after it was revealed yesterday that empty exchanges must collect check taxes from their customers, promote greater informality, at least according to players in that market.

But cryptocurrencies have begun to dispute the basis of this operation. Crypto USDT, a line of code for practical purposes, allows money to be transferred anywhere in the world instantly. The commission that is paid is still expensive. More expensive than traditional cable. But the speed is very high: cable can take several days, USDT “runs” in seconds.

The inclusion of cryptocurrencies in the informal market does not only reach small service payment businesses that operate with dollars behind authorities. It also makes great strides in the city’s financial companies.

“If you are a person who sells services in crypto, which are many, they bring you those amounts. Around USD 10,000 in USDT. The guy who brings you raises the pesos at the finance company. Pays pesos to the one who exports the services and the USDT that collects it is given to the taker who makes cables abroad,” he explained. infobae MM, money changer from Citi.

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Avi, a 29-year-old computer technician, reached out to Rosario earlier this year to offer a money desk from downtown. Prior to pursuing his career as a P2P operator (end-to-end, one-to-one operations) because of his relationships with various professionals wishing to enter the world of cryptocurrency. Some kind of independent crypto trader. The network of contacts called him to offer his services at a “cave” in Buenos Aires at the beginning of the year. Thus, I came to live in Buenos Aires and work with third party liquidity.

“The demand is mostly for USDT, the most commonly used crypto for people who charge for jobs overseas. This is how they give their income to pesos. Cable, movement to other countries, we are the most More work. And eventually people who want to invest mattress dollars are the first to enter crypto,” he said.

“The demand is mostly for USDT, the most commonly used crypto for those who charge for jobs overseas. This is how their income is transferred to pesos”

MC is one personal trainer 36 years old who lives in La Plata. His interest in crypto led him to research and specialize and in the different ways he works, he also works in the dark. Caves allow you to avoid getting into bank accounts, where all activities are tracked by the Central Bank and AFIP.

Through this conversation he said that he bought crypto in a “cave” in La Plata. USDT and Bitcoin, Ether and Cardano. When he wants to do so, he moves to an office on the first floor of a building near Plaza Moreno in the provincial capital. There, the prices are higher but, he points out, this is the price of trading in the black.

“They charged me a 3% commission on the parallel dollar price published by the media. It’s 3% for purchases, 3% for sales. 1% if you go to the capital, but it’s in the city. Then, what they charge you Let’s say, that’s dollars. And once they do, they sell you the cryptocurrency of your choice at a market price against those dollars.”, They told.

Smaller customers created a new demand: they no longer want to save not only in dollars, but they also want to buy bitcoin, ether, and other cryptocurrencies.

“Then in the Binance account or in each’s own crypto wallet, they give you the crypto. It is very simple, you show a QR and it is credited to you”, he said.

Experience, he assures, creates security for him. Since this is not the only way to work with crypto completely in the dark. In Telegram groups entered by recommendation, P2P exchangers play the same role as cavemen, but 1005 crypto. Group customers can buy and sell on Money-Changer Manager, which offers much better value than Caveman.

The problems, MC explains, are two. One, it relies on bank transfers to go from pesos to crypto and vice versa. And second, it’s hard to feel confident.

“A validation can take 3 hours, at that point you have a hard time. You have to rely heavily on your counterpart to operate P2P without the person even noticing”, he concluded.

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