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Argentina Leads Latin America in Demand for Stablecoins Due to High Inflation

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Stablecoin Purchases Surge as Peso Depreciates

Argentina has emerged as the top Latin American country for purchasing and holding stablecoins, according to a recently published report by cryptocurrency exchange Bitso. The report found that 60% of all cryptocurrency purchases in Argentina on Bitso over the past six months were stablecoins like USDT and USDC. This contrasts sharply with the rest of Latin America where stablecoin purchases comprised 31-40% of total crypto buys.

Approximately 26% of the average crypto portfolio for Argentinian users consists of stablecoins, highlighting their preference for the perceived stability of dollar pegs amid soaring inflation. Argentina’s consumer inflation rose to a staggering 211.4% in 2023, triggering a peso devaluation that has led residents to seek refuge in stablecoins.

Crypto Adoption on the Rise Despite Economic Woes

Argentina ranks second in Latin America and 15th globally for cryptocurrency adoption, according to a Chainalysis report in 2023. Bitcoin purchases represented only 13% of all crypto buys on Bitso in Argentina, significantly lower than the 38-53% range seen in other Latin American countries.

The rise of pro-crypto politicians like Javier Milei could influence Argentina’s economic policies in the future. However, for now, stablecoins remain a priority for Argentinians seeking financial alternatives against a bleak economic backdrop.

Overall crypto adoption is on the rise in Latin America, particularly in Colombia where registered exchange users grew 60% year over year in 2023. Bitcoin remains the region’s most popular cryptocurrency, though stablecoins are gaining traction due to geopolitical and economic instability.

The post Argentina Leads Latin America in Demand for Stablecoins Due to High Inflation appeared first on Althalla.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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