Argentina has been engaged in a war against inflation since 2016. Caused by multiple factors, like a lack of trust in the central bank or government overspending.
Ravenewsonline.com reports that the depreciation of the Argentinean peso has negatively impacted citizens’ purchasing power.
This online news outlet understands that this has pushed 37.3% of the population into poverty. And many more have seen their savings disappear into thin air.
Against this context, many Argentines have resorted to Bitcoin (BTC) and other cryptocurrencies as a way to protect themselves against 60% inflation.
Despite the market being in the red for months and the central bank prohibiting financial institutions from dealing with digital assets.
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Ravenewsonline.com reports that according to a research by Americas Market Intelligence reported by Reuters. Argentina’s “crypto penetration” has reached 12 percent, more than double that of Peru, Mexico, and other nations in the area.
Due of inflation, Argentines appear to be adopting cryptocurrency at a higher rate. Canva was used to make the chart.
Argentines have been increasingly turning to stablecoins. In addition to Bitcoin, as a means of keeping wealth in the US dollar. Particularly as their country enforces tight capital controls on foreign exchange transactions.
When Vitalik Buterin, the founder of Ethereum, visited Argentina in December.
He indicated that cryptocurrency use was increasing in the country, as well as stablecoin acceptance.
Mr Buterin emphasized that if the US dollar began to demonstrate major issues, this could change.
Argentina appears to be taking a cautious approach to digital asset regulation on a larger scale.
Argentine President Alberto Fernandez remarked in a Youtube interview in 2021,
“There’s a huge discussion about cryptocurrencies, it’s a global debate and I must confess it’s a matter of caution.”
Meanwhile, Ravenewsonline.com reports that, he also stated that “crypto has an advantage” because “it helps contain inflation” and that, “in a sense, it’s a steady asset.”
