The Demand for Bitcoin in Argentina has surged to its highest point in two years as the local currency of the South American country continues to depreciate against the dollar.
According to CoinTelegraph, the Argentine peso (ARS) has lost four-fold of its value against the US dollar in the last year, dropping from 0.0049 USD per ARS in March 2023 to 0.0012 USD at present.
In Response, Argentines trying to preserve their savings and avoid suffering the free fall of their local currency has led to the country recording its highest demand for Bitcoin in 20 months.
Crypto exchanges popular in the country like Lemon Cash, Ripio, and Belo all reported astronomical rise in the demand for Bitcoin in the country.
According to the CEO of the digital wallet Belo, Manuel Beaudroi, stablecoin purchases in Argentina declined from 70% to 60% as Bitcoin’s recent price surge attracted more interest.
- “The user decides to buy Bitcoin when they see the news that the currency is going up, while stablecoin is more pragmatic and many times used for transactional purposes, as a vehicle to make payments abroad.”
Mr. Manuel also confirmed that the demand for Bitcoin and Ether has increased tenfold in 2024 compared to the same time last year.
A recent report revealed that despite the perceived lack of interest in stablecoins by the Argentines, There might still be some interest in the coins but Argentines are choosing to be secretive while dealing in them.
CoinTelegraph reported that Argentines are using black market exchanges known as “Crypto caves “to purchase stablecoins in a bid to escape strict currency control and the free fall of the Argentine peso.
In other news, the use of Bitcoin to settle specific transactions is steadily on the rise in the country.
In December 2023, Diana Mondino, the minister of foreign affairs, international trade, and worship announced that some recent economic reforms and efforts on deregulation would allow the use of cryptocurrencies to settle some transactions in the country.
An example of such a transaction is an instance of a local landlord reaching an agreement with a tenant to accept his rent payment in Bitcoin.
What to know
- On March 20, Bloomberg reported data sourced from cryptocurrency exchange Lemon Cash revealing nearly 35,000 customers in Argentina purchased Bitcoin in the week ending March 10, which is double the weekly average compared to 2023.
- According to reports, Crypto is at the forefront of a side job economy in Argentina as many working-class Argentines seek foreign gigs that pay in Crypto coins.
