Argentines turn to Bitcoin amid inflation fears: report

Argentina has been fighting a war against inflation since 2016. The devaluation of the Argentine peso has had a negative impact on the purchasing power of citizens due to various factors such as lack of trust in the central bank or government overruns.

Here is bring 37.3% of the population is below the poverty line, and many others have their savings wiped out. Against this backdrop, many Argentines turned to Bitcoin (bitcoin) and cryptocurrencies as a hedge against 60% inflation, even though markets have been in the red for months and central banks intimidating Financial institutions operate from the use of digital assets.

related: Argentina’s Central Bank Steps In To Block Banks From Offering New Crypto Products

in Americas Market Intelligence Report According to Reuters, established Argentina’s “cryptocurrency penetration” reached 12 percent, double that of Peru, Mexico, and other countries in the region.

Argentines seem to be adopting cryptocurrencies at a faster rate due to inflation. Charts created via Canva.

In addition to Bitcoin, Argentines are also increasingly turning to stablecoins as a means of storing value in dollars, especially as their country imposes strict capital controls on foreign exchange services.

When the creator of Ethereum, Vitalik Buterinwho visited Argentina in December, said that cryptocurrency adoption in the country is on the rise, and Stablecoin adoption is also growing obviously. That could change if the dollar starts to have serious problems, he warned.

On a broader scale, Argentina appears to be taking a cautious approach to digital asset regulation.In a 2021 Youtube interview, Argentine President Alberto Fernandez Say“The discussion around cryptocurrencies is very broad, it’s a global debate, and I have to admit it’s a matter of caution.”

He also said that “cryptocurrency has advantages” because “it helps curb inflation” and “in a sense, it’s a stable asset.”