Argentina has been fighting against rising inflation since 2016. Caused by the lack of trust in the central bank or the governments overspending, the depreciation of the Argentinean peso has adversely impacted citizens’ purchasing power.
The situation in the country has 37.3% of the population under the poverty line, and many others have had their savings vanish into thin air. Due to this reason many Argentinians have turned to Bitcoin and crypto as a way to hedge against 60% inflation, despite the market being in the red zone for several months and the central bank not allowing financial institutions from functioning with digital assets.
Research conducted shows that crypto penetration in Argentina had reached 12% which is double that of Peru, Mexico and other countries in the region.
Argentinians have also been turning to stablecoins as a means of storing value in the United States dollar, mainly as the country imposes strict capital controls on foreign exchange services.
When Vitalik Buterin the creator of Ethereum visited the country in December, he stated that cryptocurrency adoption in the country was rising and that stablecoin adoption was also growing significantly. He cautioned that this could change if the U.S. dollar began presenting serious problems.
