Strike offers a stable currency in Argentina as a safe haven against inflation.
Strike does not include Bitcoin or the Lightning network, but rather an Ethereum-based token.
Strike, a well-known application and payment platform for bitcoin and national currencies, was released in Argentina.
Jack Mallers, Strike Developer and CEO, communicated on Twitter that the application is already available in Argentina. As he explained, it offers a stable currency that users can turn to to protect themselves from the rampant inflation in that country.
Even though the solution is being touted as being based on Bitcoin technology, it is really based on the Ethereum network, as it is the stable coin Tether USD (USDT), under the technological standard of ERC-20 tokens.
“There is an unprecedented demand for a monetary system that works on a distributed network, that has a known monetary policy, limited issuance and is resistant to censorship. Argentina needs the best monetary asset and the best network in the history of mankind: Bitcoin “
Jack Mallers, CEO of Strike.
CriptoNoticias accessed the Strike application and took some screenshots showing that the only currency available is USDT, in addition to working with the ERC-20 standard.
In the “Terms and conditions of service” section of the application, it is explained that Strike works with exchange Bittrex in custody and transfer of funds. Make it clear that Strike is not responsible for the products or services of this third-party partner.
“We are not responsible for Bittrex services, including the custody of your cryptocurrency balances. Strike is not responsible for the safekeeping of your cryptocurrency balances or for making refunds or reversing payments. You are responsible for all applicable fees and taxes, if applicable, “they say.
They also clarify that USDT is not a legal tender nor is it endorsed by any government. In addition, they indicate that, according to the requirements of its partners (Bittrex), Strike can suspend or prevent any transaction to prevent fraud or comply with current legislation.
They also mention that they do not charge any fee to the user (beyond those that are typical of the Ethereum network in case of withdrawing funds) for this service, but they reserve the right to do so in the future.
Where is Bitcoin?
It is striking that Strike does not implement Bitcoin in its version for Argentina, since this application has made use of this technology and cryptocurrency in the past.
In fact, its CEO, Jack Mallers, was in charge of giving the introductory words to the announcement of President Nayib Bukele on the proposal of the Bitcoin Law in El Salvador, during the Bitcoin Conference in June 2021. Strike is one of the wallets most widely used in that country and have always emphasized their commitment to the adoption and growth of Bitcoin and the Lightning network.
Strike comes to compete with a fairly diverse market of applications, exchanges and wallets such as Argentina. Recently, CriptoNoticias reported about Belo, an application founded in that country, but which expanded to 13 Latin American countries with plans to launch a debit card paid with bitcoin, like the one that Lemon and BuenBit already have.
Likewise, other applications such as Typibit and Cafecito allow to receive donations and tips in bitcoin through Lightning, while local exchange houses maintain advertising campaigns in clear competition to offer Argentines an alternative to the devaluation of their currency.
The only form of interaction that Strike Argentina can have with Bitcoin is to receive tips from Twitter sent with Lightning. As Jack Mallers showed in a tweet, the CEO sent the equivalent of $ 10 in bitcoin to Twitter’s tip portal, and received it as USDT in the Strike app.
What is the purpose of Strike when using Ethereum?
Although the arrival of this application in Argentina can be perceived as positive, currently its usability is limited and there are no indications that this will change in the future.
The only ways to use Strike are: transfer USDT from another Strike account, free of charge, without commissions; or deposit USDT from another Ethereum wallet, paying the high commissions of that network.
In addition, we must reiterate that the version of Strike in Argentina does not allow the convertibility of USDT to ARS, which is possible in its version in other countries.
This could leave it with very little advantage over the dozens of applications, brokers and wallets that operate in Argentina and have boarding gates to banks and use other cheaper networks, for example, Tron or the Binance Smart Chain.