In the face of a plummeting Argentine peso (ARS), which has seen its value against the US dollar quadruple in decline over the past year, Argentines are increasingly turning to Bitcoin to safeguard their wealth. The latest figures reveal a significant spike in Bitcoin acquisitions, with reported transactions doubling in a single week.
The week ending March 10 marked a milestone for Bitcoin transactions in Argentina, as nearly 35,000 individuals flocked to cryptocurrency exchange platforms, a surge that hasn’t been observed in the previous 20 months. This uptick is a direct response to the ARS’s staggering drop from 0.0049 to 0.0012 USD since March 2023.
While Lemon Cash, a local exchange, noted this remarkable increase, it’s not alone. Competing platforms Ripio and Belo echo this growing trend, with Belo’s CEO, Manuel Beaudroi, highlighting a shift in consumer behavior. Beaudroi points out that while stablecoin transactions have dipped by 10%, Bitcoin and Ether dealings have expanded tenfold in 2024 compared to the same timeframe in the previous year.
This pivot towards cryptocurrencies is not limited to investment strategies. December 2023 saw a legal decree facilitating the use of Bitcoin for certain transactions, a move that’s already impacting everyday life. A rental agreement in Rosario, paid in Bitcoin, exemplifies the growing integration of digital currencies into the Argentine economy.
As the country grapples with stringent currency controls and soaring inflation rates, many are turning to “crypto caves” — informal markets for USD stablecoins — highlighting a nuanced approach to digital asset utilization in Argentina.
