Summary:
60% of cryptocurrency purchases in Argentina are stablecoins, used as a hedge against inflation.
Cultural factors and exchange rate fluctuations drive the preference for stablecoins over volatile cryptocurrencies.
Stablecoins are preferred for value protection, especially right after salary payments.
Only 12% of transactions involve Bitcoin, indicating a distinct separation in their use cases.
Bitcoin remains a savings or investment asset for Argentines despite the focus on stablecoins.
A recent report by Bitso, one of the largest crypto exchanges in Latin America, highlights a significant trend: Argentines are increasingly turning to stablecoins over other cryptocurrencies. During the first half of 2024, 60% of cryptocurrency purchases in Argentina involved stablecoins, a clear indication of their preference for these digital assets as a hedge against inflation and currency devaluation.
Argentines Purchase the Most Stablecoins in Latam
The report, titled “Latam’s Crypto Landscape,” analyzes the cryptocurrency behavior of users in the region and reveals that cultural factors, exchange rate fluctuations, and the high inflation rates in Argentina are driving this trend. Argentines are choosing stablecoins as a means to protect the value of their savings rather than investing in more volatile cryptocurrencies.
Julian Colombo, the General Director of Bitso Argentina, noted a growing trend in the Argentine cryptocurrency market, stating that since 2023, there has been a notable increase in the popularity of the crypto dollar. He mentioned, "The stabilization of exchange rate volatility in 2024 has led to a shift towards more volatile cryptocurrencies like Bitcoin or Ether."
Despite this shift, stablecoins remain the preferred choice for 60% of purchases, significantly higher than the 36% average across Latam. Colombo pointed out that many Argentines acquire crypto right after receiving their salaries to safeguard their funds against inflation.
In contrast, only 12% of transactions were dedicated to purchasing Bitcoin, which is less than half of Latam’s average. However, Bitcoin continues to hold a place in the wallets of Argentines, often viewed as a savings or investment asset while stablecoins are favored for their transactional utility.
Other exchanges have also reported a rise in Bitcoin investments, particularly in March, which can be attributed to the strong performance of the Argentine peso against the U.S. dollar.
What are your thoughts on Argentina’s increasing demand for stablecoins? Share your opinions in the comments below!
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