In Argentina and Venezuela, people have moved to save in US dollars. A measure taken to protect themselves from inflation and constant devaluation of their local currency.
In Venezuela, Asdrúbal Oliveros affirms that digital transactions in foreign currency have comprised up to 25% of all payments made in foreign currency within the country. The exact amount is currently 11.4%, partly due to the prohibition of issuing transactions in dollars between Venezuelan bank accounts.
In Argentina, to buy savings dollars, Argentinians have to go through what are called “windows” and have a local bank account. There’s a $200 limit per person per year, though. People are only allowed to buy half the amount if they do so through their homebanking.
It is not surprising that some Venezuelans and Argentinians have opted for other alternatives, such as USDT, a cryptocurrency pegged 1:1 to the US dollar. People in emerging economies use USDT (or Tether) as a mechanism to dollarize their savings. In this guide, we will show you how Venezuelans and Argentinians can buy USDT at El Dorado as an option to access dollars.
¿How do you buy dollars at windows in Argentina?
To buy dollars in Argentina using the windows option, you first need to request on the Internet or at one of your local bank’s branches. When buying dollars this way, you will have to pay the official bank exchange rate, plus a 30% tax called Impuesto PAIS and an additional 35% tax for capital gains taxes. Only then you are allowed to buy the dollars by debiting your savings account in Argentinian Pesos or via cash settlement at a local branch.
¿Who can buy the 200 savings dollars in Argentina?
To be eligible for buying the 200 dollars at the official exchange rate in Argentina, it is a requirement for the person purchasing the dollars not to fulfill any of the following scenarios:
- Be a beneficiary of social programs or the ANSES program,
- Have irregular or undeclared income streams,
- By consignee at any bank account, work for an employer that has received the ATP program.
- Have refinanced a credit card debt in the last 12 months,
- Have request borrowings at 0% interest rates,
- Have accessed dollars at the “MEP” exchange rate,
- Be the owner of UVA credits that benefited from the freezing of rates during the pandemic,
- Be the owner of a small or mid-sized company that has borrowed at preferential interest rates,
- Have benefited from the income reinforcement” program.
- Have transacted using cedears, cryptocurrency, or negotiable obligations in the last 90 days.
If any of the above conditions are met, you won’t be eligible to buy the $200 savings dollars in Argentina.
¿What is dollar Tether or USDT?
You may have already heard about Tether or USDT. Tether is part of a family of cryptocurrencies called stablecoins and was introduced in 2014 with the objective of creating the first crypto which value was pegged to the US dollar, with a 1:1 parity. Thus, it is used as a substitute for the US dollar for those that don’t own a bank account that can accept dollar deposits. At El Dorado, it is possible to open an account in USDT for free, with 0 minimum deposits.
¿What is it and how can I buy USDT at El Dorado P2P?
El Dorado is an easy-to-use P2P marketplace to buy and sell dollars, euros, or Bitcoin. Our mission is to build the most accessible platform to exchange crypto for local currencies in LatAm and the US.
With an El Dorado App user, you can access a wallet that can send and receive USDT, BTC, cUSD, or cEUR. Furthermore, we’ve built a person-to-person marketplace that facilitates the exchange between cryptos, such as USD Tether (USDT) or Cello Dollars (cUSD), and South American currencies, such as Venezuelan Bolívares and Argentinean Pesos.
Our vision is that P2P markets such as El Dorado will be essential to onboard the first billion people into crypto.
¿What are the benefits of buying USDT?
There are several factors that motivate people to save in cryptocurrencies like stablecoins:
- Dollar reserves back them, so they follow the US dollar’s value, removing the volatile aspect of assets like Bitcoin
- They’re an alternative to buying dollars in amounts above the limits of the traditional banking system.
- They can be fractionated because they’re digital in nature, allowing people to pay or send with the exact amounts they need, something impossible to do with cash.
- They can be sent quickly globally; you only need a wallet App to do so
- In P2P markets like El Dorado, you can check the reputation of the person that’s selling or buying from you USDT, allowing you to make sure you’re doing business with a trusted party
Step by step to buy USDT dollars in El Dorado
Buying USDT dollars in El Dorado P2P is easy and fast. Follow these simple steps to purchase USDT through El Dorado App:
1. Download our App and create your account
2. Verify your email address
3. Verify your identity; it takes less than 3 minutes.
4. Go to the “exchange” section, and select the local currency you’d like to use on one side and USDT on the other.
5. Choose between the available offers to buy USDT in your local currency.
6. Use the information on-screen to pay the vendor the total amount in your local currency. Make the transaction using your banking or payment App and mark the transaction as paid.
7. Wait for the vendor to confirm your payment, et voilá! Your dollars will be automatically deposited into your USDT wallet.
4 Tips to save in dollars at El Dorado
When buying through our P2P marketplace, we recommend the following:
- Always remember to verify the vendor’s payment information before issuing a payment.
- Remain active/online when doing business with a vendor to respect their time
- Carry out the conversation with the vendor through our in-app chat. This will allow our team to assist you as quickly as possible if you request a dispute.
- Remember that you can create your offers to earn extra crypto by charging others your desired fee.
Savings in dollars is a need for Venezuelans and Argentinians. Stablecoins such as USDT have established themselves as a viable alternative for many in Latin America. Today they are a savings mechanism for millions in the region. El Dorado App lets you easily buy dollars using your local currency or the preferred payment method.