I am in a country where the local currency has lost significant value over the past two years. Holding USDT has been the obvious hedge but the problem is actually using it for day to day purchases.
Converting back to local currency to spend defeats the point because you are taking on the devaluation at the moment of spending. Most of the crypto spending solutions I have looked at either do not work in my country, require a top-up conversion step that reintroduces the same problem. Is there actually a workable solution for people in this situation.
My country's currency lost 40% this year and the currency is basically a joke
byu/Ok_Effective8240 ineconomy
Posted by Ok_Effective8240
2 Comments
Why do you say you’re taking the devaluation when you spend it?
Is the exchange rate between USDT and your currency not reflective of your inflating currency?
IE, when you buy USDT in your currency, do you not sell it for a greater amount, though similar purchasing power to what you originally put in, later?
If you’re able to pay by card then would it not be possible to have a USD account and pay using that card? You would be charged a bad exchange rate at the time of purchase but that still sounds like a win.