Argentina Leads Crypto Adoption
The crypto adoption rate in Argentina has skyrocketed, surpassing every other nation in the Western Hemisphere, according to Forbes data. The country’s ever-surging inflation of the local currency, Peso, and complex access to the dollar have been the primary drivers behind this trend.
With the Peso inflation rates reaching a cumulative 276% in the past 12 months, Argentinians are increasingly turning to cryptocurrencies as a hedge against their depreciating currency. The adoption of crypto assets, particularly stablecoins like USDT, has been on the rise, with Chainalysis reporting that Argentina leads Latin America in raw transaction volume, reaching approximately $85.4 billion by July 2023.
Popular exchanges in the country, such as Binance, eToro, BingX, HTX, and Bitget, have seen a significant increase in users from Argentina. Maximiliano Hinz, the head of Latin America for BitGet exchange, noted that many Argentinians buy USDT and do not engage in other crypto activities, highlighting the country’s unique market behavior.
The new pro-Bitcoin Argentinian president, Javier Milei, is open to dollarizing the country as a solution to the economic challenges. He believes that as more competing currencies, including the dollar and crypto assets, circulate, the use of the Peso will diminish, ultimately leading to its elimination.
As the crypto adoption rate continues to soar in Argentina, it is evident that the country’s economic instability is driving individuals to seek alternative financial solutions, with cryptocurrencies emerging as a viable option for many.