Argentina
has
the
highest
cryptocurrency
adoption
rate
in
the
Western
Hemisphere,
according
to
a
recent
report
from
Forbes.
Facing
extremely
high
inflation
over
decades
that
has
markedly
devalued
its
national
currency
peso,
Argentina
has
turned
to
alternative
investments
like
cryptocurrencies.
SimilarWeb’s
data
compiled
by
Forbes
shows
that
2.5
million
visitors
from
Argentina
accessed
55
of
the
world’s
largest
cryptocurrency
exchanges,
which
is
about
1.92%
of
total
visitors
worldwide.
Additionally,
Argentina
accounts
for
6.9%
of
total
visits
to
Binance,
the
leading
cryptocurrency
exchange
in
terms
of
trading
volumes.
Cryptos
To
Survive
Unlike
the
trend
of
investing
in
meme
coins
seen
in
major
markets
such
as
the
U.S.
and
the
UK,
Argentines
predominantly
purchase
and
hold
stablecoins
like
Tether
(USDT).
Normally,
people
buy
cryptocurrencies
to
trade
or
use
them
for
other
purposes.
They
might
buy
Bitcoin
hoping
it
will
increase
in
value
or
use
Ethereum
to
pay
for
something
online.
However,
in
Argentina,
many
people
buy
USDT
and
then
choose
not
to
do
anything
with
them,
said
Maximiliano
Hinz,
head
of
Latin
America
at
Bitget.
This
trend
in
Argentina
suggests
that
people
desire
to
hold
USDT
to
store
their
wealth
in
something
more
stable,
particularly
amid
the
country’s
record-high
inflation.
Argentina
has
been
grappling
with
extremely
high
inflation,
with
annual
rates
reaching
nearly
300%
as
of
April
2024.
The
rate
decreased
to
276%
in
May,
the
lowest
since
January
2022
and
the
fifth
decrease
in
a
row.
Despite
some
improvements,
Argentina’s
annual
inflation
remains
extremely
high,
at
over
275%.
This
stubborn
inflation
has
weakened
the
country’s
peso,
which
becomes
worth
less
as
prices
rise.
The
Joys
of
Fiat
Currency
With
the
peso’s
value
constantly
eroding,
people
lose
confidence
in
it
and
look
for
alternative
ways
to
store
their
wealth.
The
widespread
adoption
of
cryptocurrencies
in
Argentina
is
also
backed
by
the
country’s
leadership.
President
Javier
Milei
is
a
staunch
supporter
of
cryptocurrencies,
particularly
Bitcoin.
He
has
made
pro-crypto
policies
a
key
part
of
his
agenda
since
being
elected
president
of
Argentina
in
November
last
year.
Milei
has
recently
advocated
for
free
competition
of
currencies.
He
wants
to
give
citizens
the
freedom
to
choose
their
preferred
monetary
units,
including
Bitcoin,
WTI,
and
BTU.
However,
Milei
has
not
gone
as
far
as
making
Bitcoin
legal
tender
in
Argentina,
as
El
Salvador
has
done
under
President
Nayib
Bukele.
El
Salvador
is
also
the
first
country
to
legalize
Bitcoin.
According
to
recent
reports,
high-level
officials
from
both
countries’
regulatory
bodies,
including
Argentina’s
National
Securities
Commission
(CNV)
and
El
Salvador’s
National
Digital
Assets
Commission
(CNAD),
have
held
meetings
to
exchange
insights
and
explore
potential
collaboration
agreements.
The
discussions
focused
on
El
Salvador’s
pioneering
experience
in
adopting
Bitcoin
as
legal
tender
and
Argentina’s
efforts
to
learn
from
this
experience
to
enhance
its
own
crypto
adoption
and
regulation
strategies.
Control
Freaks
Despite
Argentina’s
openness
to
cryptocurrencies,
the
country
has
faced
challenges
in
regulating
the
crypto
industry.
The
CNVhas
yet
to
register
any
of
the
top
crypto
exchanges,
including
Binance.
The
lack
of
regulation
has
been
ongoing
despite
efforts
to
introduce
registration
requirements
for
crypto
firms
in
April
2024.
Argentina
still
struggles
to
provide
secure
and
regulated
cryptocurrency
services
in
the
nation.
The
new
regulations
regarding
Bitcoin
face
criticism
due
to
its
unnecessary
compliance
in
requiring
both
companies
and
individuals
involved
in
digital
assets
to
register
with
the
government.
Still,
Argentina
is
a
promising
market
for
Bitcoin
and
cryptocurrency
adoption.
As
one
of
the
fastest-growing
cryptocurrency
markets,
Argentina
ranks
13th
in
Chainalysis’
2022
Global
Crypto
Adoption
Index.
Reports
from
Morning
Consult
indicate
that
Argentines
have
more
confidence
in
crypto
assets
than
people
in
other
countries.
This
is
likely
due
to
Argentina’s
high
inflation,
which
has
led
to
only
35%
of
Argentines
believing
the
peso
will
hold
its
value
for
the
next
1-2
years.
Go to Source
Author: Nicholas Say
