Argentina Turns to Bitcoin Amid Rising Inflation

In response to rising inflation, Argentina has become an increasingly crypto-friendly country in adoption, with the highest penetration rate in South America.

Argentina – crypto-friendly country

In response to rising inflation, Argentina has become an increasingly crypto-friendly country in terms of adoption.

Since 2016, Argentina has been engaged in the fight against inflation. Due to various factors, such as a lack of confidence in the central bank or government overspending, the falling Argentine peso has harmed people’s purchasing power.

This has brought 37.3% of the population below the poverty line and made people’s savings meaningless. Against this backdrop, many Argentinians have turned to Bitcoin (BTC) and cryptocurrencies to hedge against 60% inflation, despite the market being in the red for several months and the central bank banning institutions. Finance works with digital assets.

In an Americas Market Intelligence report cited by Reuters, “crypto penetration” in Argentina has reached 12%, double that of Peru, Mexico, and other countries in the region.

In addition to Bitcoin, Argentinians are increasingly turning to stablecoins as a store of value in the US dollar, especially as their country imposes strict capital controls on services. Argentina appears to be taking a cautious approach to digital asset regulation on a broader scale.

In a 2021 Youtube interview:

“There is a huge discussion about cryptocurrencies, it is a global debate, and I must confess that it is a matter of caution.”

Argentine President Alberto Fernandez said

Bitcoin adoption is progressing in Argentina as Landium, a real estate company, is kicking off major construction with a Bitcoin mining farm. The purpose is to generate income for the building’s operations, allowing it to reduce maintenance costs, thereby saving its occupants the cost of acting on their own. Ideally, the value of Bitcoins grows to a value that creates a surplus, which can then be distributed to many residents, and thus the residents get paid to reside in the building. This building became the world’s first residential building with a Bitcoin mining farm.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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