The popularity of Bitcoin and other cryptocurrencies in Argentina is growing rapidly. Reason? The people of the country are looking for new ways to escape inflation.
Argentina loves Bitcoin
– The number of accounts for investing in cryptocurrencies has increased in Argentina since 2020 – He said media Maximiliano Hinz, director of the Binance cryptocurrency exchange for Latin America.
The reason may be inflation, as the value of Argentina’s currency – the peso – is practically falling every day. Inflation has averaged 45% over the past three years. In addition, the country’s GDP fell by around 10% in 2020, while the economy has been in recession since 2018.
Previously, Argentines invested their money in US dollars to offset peso inflation, but even this method has become unprofitable recently.
In addition to extremely low interest rates at local banks, the government has also imposed a strict purchase limit of $ 200 per month on every citizen.
For Bitcoin problems!
In this environment, cryptocurrencies have become the obvious solution to Argentina’s economic problems. According to Hinz, there are currently approximately two million trade accounts registered in the country for 45 million citizens.
– It is no coincidence that Argentina and Venezuela, countries with high inflation, are the main cryptocurrency markets in South America – noted digital asset specialist Marcos Zocaro. – I have older clients who were once afraid to deposit some amount into a bank account, but buy cryptocurrency without fear of risk – added.
In this atmosphere of economic uncertainty, the cryptocurrency exchange “Evolved to create bridges for society without financial education”, Sebastian Valdecantos, founder of the Argentine online credit system Moneda PAR, added.
At the same time, Argentinians are also increasingly using cryptocurrency as a means of payment, as everything from cars to used clothes can be bought and sold for digital assets.
Last week, local e-commerce giant Mercado Libre also announced it would enable Bitcoin payments for real estate – in a sector that was previously dominated by the U.S. dollar.
The Argentine Central Bank, however, asked banks to provide him with information that would help him identify clients who trade BTC or make payments using cryptocurrencies.