Argentina is now one of the crypto-friendly countries in terms of crypto adoption. Argentina has been engaged in a war against inflation since 2016, caused by a lack of trust in the Central bank or government overspending, and the depreciation of the Argentinian peso which has negatively impacted the citizens of Argentina.
This further brought 37.3% of the population under the poverty line, affecting many others to vanish their savings into the air. In response to this backdrop, Argentines have transformed to Bitcoin (BTC) and crypto as a way to fight over 60% inflation.
According to the American market Intelligence report, crypto penetration in Argentina had reached 12%, which is nearly double that of countries like Peru, Mexico and others.
Due to Argentina’s strict capital controls on foreign exchange services, the Argentines along with Bitcoin are now turning to stablecoin constantly to store their value in terms of the United States dollar.
Further, the founder of Ethereum Vitalik Buterin visits Argentina in the month of December and says that Argentina is rapidly adopting crypto and the stablecoin adoption in the country is also on the rise. If the U.S dollar began executing any form of serious problems this may change, he says.
Argentina seems to be taking a cautious approach to digital asset regulation on a broader scale. Argentina President Alberto Fernandez says in a 2021 youtube review that “There’s a huge discussion about cryptocurrencies, it’s a global debate and I must confess it’s a matter of caution.”
He further stressed on a note that, “Crypto has an advantage because it helps contain inflation as it’s a steady asset.”