Between July 2023 and June 2024, more crypto was coming into Argentina than into Brazil. This made Argentina the biggest cryptocurrency market in Latin America. Chainalysis statistics shows that a total of $91 billion was deposited in cryptocurrencies in Argentina, just slightly more than Brazil’s $90 billion during the same time period.
The country is quickly moving toward cryptocurrencies, especially stablecoins. This is happening at a time when the economy is still having problems, such as high inflation and the Argentine peso losing value. Many Argentinians have turned to stablecoins, which are backed by the US dollar, as a better way to keep their funds.
Stablecoin trades made up 61.8% of all crypto activity in Argentina, which is a lot more than the world average of 44.7%. This choice shows that people are relying more and more on stablecoins to protect their assets from inflation and the unstable economy. It was also said in the study that small stablecoin transactions, especially those worth less than $10,000, are growing faster than any other type of cryptocurrency trade in Argentina.
This trend shows how important cryptocurrency, especially stablecoins, is for countries whose economies aren’t stable. Argentinians can protect their money from the unstable value of the peso by using stablecoins. This gives them more control over their financial futures.
The company that makes Tether, the most famous stablecoin backed by the US dollar, has focused on developing countries like Argentina that want digital dollars a lot. Chief Executive Officer of Tether, Paolo Ardoino, said that stablecoins are a safe and easy way for Argentinians to keep value without using cash.
Since President Javier Milei took office in late 2023, laws have changed to make Argentina an even more crypto-friendly place. For example, Bitcoin is now a valid choice in legally binding contracts. Even though the number of people using cryptocurrencies is growing quickly, Argentina’s government has not yet set up official rules for the market.
It’s not just because the country’s economy is having trouble; its people also want financial security in an unstable economy, which is why they are relying more and more on bitcoin. As Argentina continues to use digital currencies, it is still a star in the growing field of cryptography in Latin America.
