In countries with weak local currencies, stablecoins like USDT offer a way to preserve value against inflation. For many, they’re not just trading tools,they’re lifelines.
This shows how crypto adapts to real-world problems, offering solutions where traditional finance struggles. But it also raises questions about control and regulation.Will stablecoins become everyday money in places facing inflation or stay tools for traders only?
That's true. But the benefits can only be obtained if you're able to access such stablecoin. Most of them are available through KYC-compliant exchanges (otherwise known as centralized exchanges), making it difficult for people living in third-world countries to access them. Especially when such exchanges introduce restrictions/limitations based on region. Acquiring a stablecoin through a decentralized exchange or P2P trading platform might work, but liquidity is often low. Even if you get access to, let's say, a USD-backed stablecoin, you'd still be subject to censorship.
I've read that issuers have the ability to "freeze" addresses belonging to stablecoin holders if they deem the transaction "suspicious". If you're lucky, holding a stablecoin backed by a strong currency will allow you to beat inflation for good. Especially if we're talking about countries such as Venezuela, and Argentina. I think stablecoins will become everyday money in places where there's high inflation. They might eventually replace national currencies. But only if governments allow it.