In response to rising inflation, Argentina has become an increasingly crypto-friendly country, with the highest adoption rates in South America.
Since 2016, Argentina has faced a war against inflation. Due to various factors, such as a lack of trust in the central bank or a government overspending, a sharp drop in the Argentine peso has hurt people’s purchasing power.
This has left 37.3% of the population below the poverty line and rendered people’s savings meaningless.
Against this backdrop, many Argentinians have turned to Bitcoin (BTC) and cryptocurrencies as a hedge against inflation, despite the crypto market in the red over the past few months and the central bank banning financial institutions from providing financial services. provide electronic money services.
Inflation in this South American country is up to 60%.
In a Reuters report, the “crypto penetration rate” in Argentina has reached 12%, double that of Peru, Mexico, and other countries in the region.
In addition to Bitcoin, Argentines are turning to stablecoins, especially when the country is applying strict foreign currency controls.