Argentina has been at war against inflation since 2016. Due to multiple factors, such as distrust of the central bank or excessive government spending, the depreciation of the Argentine peso negatively affected the purchasing power of citizens. This has put 37.3% of the population below the poverty line, and many others' savings have vanished into thin air.
Against this backdrop, many Argentines have turned to Bitcoin (BTC) and cryptocurrencies as a hedge against 60% inflation, even though the market has been in the region Alhambra for several months, and that the Central Bank prevents financial institutions from operating with digital assets.
In an American Market Intelligence report cited by Reuters, cryptocurrency penetration in Argentina was found to have reached 12%, double that of Peru, Mexico and other countries. in the area.
In addition to Bitcoin, Argentines are increasingly turning to stablecoins as a way to store US dollar value, especially as their country imposes strict capital controls on foreign exchange services.
On a larger scale, Argentina appears to be taking a cautious approach to regulating digital assets. In an interview with YouTube in 2021, Argentine President Alberto Fernandez said: “There is a huge debate about cryptocurrencies, it is a global debate and I must admit it is a matter of caution.”
On a brighter note, he also mentioned that cryptocurrency has an advantage because it helps contain inflation and is to some extent a stable asset.
