In Argentina, an increasing number of citizens are purchasing Bitcoin in an attempt to safeguard their savings from the depreciating value of the Argentine peso. Recent data reveals that Bitcoin acquisition has reached its highest level in the last 20 months, with a record number of approximately 35,000 new customers buying Bitcoin in just one week, which is twice the weekly average observed in early 2023.
Bitcoin’s Popularity Soars as Peso Plummets
The Argentine peso has dropped significantly in value against the US dollar over the past year, prompting locals to seek more stable investment options. Bitcoin has become one of the preferred alternatives due to its decentralized nature and potential as a hedge against inflation. As the peso’s value fell from 0.0049 to 0.0012 US dollars, Bitcoin’s allure has only grown stronger among Argentinians.
Several Argentine cryptocurrency platforms, such as Lemon Cash, Ripio, and Belo, have reported noticeable increases in Bitcoin trading activity. Belo’s CEO has highlighted the spike in Bitcoin’s price as a catalyst for heightened customer interest, which has also affected the proportion of stablecoin purchases in the country, reducing them from 70% to 60%.
Adopting Crypto Amid Financial Turmoil
The significant growth in Bitcoin and Ethereum trading volumes, as cited by Belo’s CEO, underscores the rising popularity of cryptocurrencies in Argentina. Despite this, some Argentinians still opt for unofficial “crypto caves” to bypass currency restrictions and obtain US dollar-pegged stablecoins, indicating that stablecoins have retained their appeal.
Cryptocurrency adoption has also been bolstered by recent government initiatives, such as the decree announced in December 2023, which permits the use of Bitcoin and other digital currencies under specific conditions. A notable example of crypto adoption is the case of a landlord and tenant in Rosario, who have agreed on a rental payment arrangement in Bitcoin. These steps indicate a trend towards increasing cryptocurrency acceptance in Argentina, driven by the population’s pursuit of financial security and alternatives amidst economic instability.