Argentinians’ efforts to protect their savings against the continuous devaluation of the national currency, the Argentine peso (ARS), have led to a significant increase in the demand for Bitcoin (BTC) in the country. According to a recent report, Argentina saw the highest Bitcoin adoption in 20 months, with data showing that around 35,000 customers purchased Bitcoin in the week ending March 10, doubling the weekly average compared to 2023.
Intense Interest in Bitcoin Among Argentinians
Experts primarily attribute the increase in Bitcoin demand in the country to the ongoing devaluation of the Argentine peso. Over the past 12 months, the value of the ARS against the US dollar has dropped fourfold, from 0.0049 US dollars per ARS in March 2023 to 0.0012 US dollars per ARS. This economic instability has pushed many Argentinians to seek alternative stores of value, with Bitcoin emerging as a popular choice.
While Lemon Cash is the primary platform reporting an increase in Bitcoin demand, other major exchanges in Argentina, including Ripio and Belo, have also recorded similar trends. The CEO of digital wallet provider Belo, Manuel Beaudroi, emphasized that the recent price increase of Bitcoin has led to a surge in user interest, resulting in stablecoin purchases in Argentina dropping from 70% to 60%.
Beaudroi also noted a significant increase in Belo’s BTC and Ethereum (ETH) trading volume, with a tenfold growth compared to the same period last year in 2024. However, despite the rise in Bitcoin demand, a recent report indicates that some Argentinians prefer to use local “crypto caves,” or black market exchanges, to circumvent strict currency controls and combat rising inflation by purchasing US dollar-pegged stablecoins, which shows that interest in stablecoins remains high.
Steps Taken to Increase Usage
While the use of cryptocurrencies for certain transactions is gradually gaining interest in Argentina, the country has experienced significant regulatory developments regarding the adoption of cryptocurrencies. In December 2023, the Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, announced a decree aimed at economic reform and deregulation, which allowed the use of BTC and other cryptocurrencies under certain conditions in the country.
Following this decree, a local landlord and tenant in Rosario, Argentina’s third most populous city, made headlines by signing a rental agreement for the tenant to pay monthly rent in Bitcoin. All these developments have led to an increase in the use of cryptocurrencies in the country, driven by the citizens’ need for financial stability and alternatives to traditional fiat currencies due to the poor economy of Argentina.
