Argentina Crypto Adoption Soars, Overtaking Brazil as Latam Leader
As far as expected user inflows into cryptocurrencies go, Argentina, one of the fastest-growing markets, has surpassed Brazil to become the leading Latin American (Latam) nation. According to Chainalysis’ study on October 9, cryptocurrency users in Argentina deposited the most cryptocurrency in Latam between July 2023 and June 2024, with inflows amounting to $91 billion.
A decade-long fight with inflation and local currency devaluation has forced Argentinians to look for alternative ways to save, including utilizing the US dollar or dollar-pegged stablecoins, which has led to the country’s rapid rise in crypto adoption. When it comes to the percentage of stablecoin transactions, Chainalysis claims that Argentina has one of the biggest stablecoin markets worldwide. It is also one of the top players in the Latin American area.
Argentina’s Stablecoin Transactions Reach 61.8%, Surpassing the Global Average
Slightly higher than Brazil‘s share of 59.8%, Argentina accounted for 61.8% of the stablecoin transaction volume between July 2023 and June 2024. Stablecoin activity in Argentina is less than that of Columbia (66%), but it is still significantly higher than the 44.7% average worldwide.
In Argentina, the proportion of stablecoin transactions under $10,000, or retail-sized transactions, is increasing at a quicker rate than any other asset class, according to the report. Stablecoins appear to be becoming more and more popular among Argentinians as a means of guarding against inflation and currency fluctuations.
Their interest in stablecoins highlights the role of crypto in unstable markets and how citizens are able to take better control of their financial futures by embracing cryptocurrency, regardless of official monetary policy.
The report
President Javier Milei’s Bitcoin Support Spurs Cryptocurrency Growth in Argentina
Argentina is trying to project a more welcoming image for cryptocurrency. After President Javier Milei, who is pro-Bitcoin, gained office in December 2023, Argentina permitted the use of Bitcoin in legally binding contracts in late 2023.
On the other hand, stablecoin issuer Tether is paying more attention to developing markets like Argentina than to developed ones like the US, which is contributing to the country’s increasing stablecoin activity. Argentina needs the “digital dollar,” as Tether CEO Paolo Ardoino told Cointelegraph last week.
That people want to hold that dollar, not in cash, but in a digital form because it’s much more convenient,
Ardoino
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