Argentinians’ endeavors to safeguard their savings amidst the continuous decline of their national currency, the Argentine peso (ARS), has resulted in the country experiencing its highest demand for Bitcoin (BTC) in 20 months, as per a recent report.
According to Bloomberg, data obtained from cryptocurrency exchange Lemon Cash revealed that nearly 35,000 customers in Argentina purchased Bitcoin in the week ending on March 10, which is twice the weekly average compared to 2023.
The ongoing decline of the nation’s currency is a major factor contributing to the surge in demand. Over the past year, the value of ARS against the US dollar has fallen by four times, going from 0.0049 USD per ARS in March 2023 to 0.0012 USD at the time of publication.
However, it is worth noting that Lemon Cash is not the only platform witnessing a spike in demand. Other major exchanges in Argentina, such as Ripio and Belo, have reported similar trends.
Manuel Beaudroi, the CEO of the digital wallet Belo, revealed that stablecoin purchases in Argentina have decreased from 70% to 60% as more people have been attracted to Bitcoin due to its recent price surge. He also stated that Belo has witnessed a tenfold increase in Bitcoin and Ether volume in 2024 compared to the same period last year.
Nevertheless, a recent report suggests that interest in stablecoins may still exist, as Argentinians might be opting not to use well-known local exchanges to purchase them. Instead, they are turning to black market exchanges known as “crypto caves” to acquire USD stablecoins as a means to evade strict currency controls and the escalating inflation of ARS.
In the meantime, the use of digital currency for specific transactions is gradually gaining traction in Argentina. In December 2023, Diana Mondino, the minister of foreign affairs, international trade, and worship, announced that a decree aimed at economic reform and deregulation would permit the use of Bitcoin and other cryptocurrencies in the country under certain conditions.
Following this ruling, a landlord and a tenant in Rosario, Argentina’s third most populous city, entered into a rental agreement where the tenant would pay their monthly rent in Bitcoin.
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