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Argentines are increasingly turning to Bitcoin as a way to preserve their savings amidst the ongoing decline of the Argentine peso. According to a recent report, the demand for Bitcoin in Argentina has reached its highest point in 20 months.
On March 20, data from cryptocurrency exchange Lemon Cash revealed that nearly 35,000 customers in Argentina purchased Bitcoin in the week ending March 10, which is double the weekly average compared to 2023.
Reasons for Increased Demand
One of the major reasons for this surge in demand is the continuous decline of the Argentine peso. Over the past year, the peso’s value against the United States dollar has plummeted significantly.
During this period, Lemon Cash wasn’t the only platform experiencing a rise in Bitcoin demand. Other major exchanges in Argentina, such as Ripio and Belo, also reported similar trends.
Shift from Stablecoins to Bitcoin
CEO of the digital wallet Belo, Manuel Beaudroi, noted that stablecoin purchases in Argentina have declined from 70% to 60% as Bitcoin’s recent price surge has attracted more interest. He mentioned that the decision to buy Bitcoin is often driven by news of the currency’s rise, while stablecoins are commonly used for transactional purposes.
Beaudroi also mentioned that Belo has witnessed a tenfold increase in Bitcoin and Ether volumes in 2024 compared to the same period last year.
Interest in Stablecoins
Despite the shift towards Bitcoin, interest in stablecoins still exists among Argentines. Some individuals are using black market exchanges, known as “crypto caves,” to purchase U.S. dollar stablecoins to avoid strict currency controls and the rising inflation of the peso.
Adoption of Digital Currency
There is a gradual adoption of digital currency for specific transactions in Argentina. In December 2023, a decree aimed at economic reform and deregulation was passed, allowing the use of Bitcoin and other cryptocurrencies in the country under certain conditions.
As a result, a landlord and tenant in Rosario, Argentina’s third most populated city, recently sealed a rental agreement where the tenant would pay monthly rent in Bitcoin.
