Argentinians are turning to Bitcoin as a way to secure their savings amidst the continuous decline of their national currency, the Argentine peso. A recent report reveals that the demand for Bitcoin in Argentina has reached its highest level in 20 months. Data from cryptocurrency exchange Lemon Cash shows that nearly 35,000 customers in Argentina purchased Bitcoin in the week ending March 10, which is double the weekly average compared to 2023.
The ongoing depreciation of the peso is a major factor driving the increased demand for Bitcoin. Over the past year, the peso’s value against the US dollar has plummeted from $0.0049/peso in March 2023 to $0.0012/peso at the time of publication. Lemon Cash is not the only platform experiencing a surge in demand, as other major exchanges in Argentina, including Ripio and Belo, have also reported similar trends.
According to Manuel Beaudroi, the CEO of digital wallet Belo, stablecoin purchases in Argentina have declined from 70% to 60% as more people are becoming interested in Bitcoin due to its recent price surge. Beaudroi also mentioned that Belo has seen a tenfold increase in Bitcoin and Ether volume in 2024 compared to the same period last year.
Although interest in stablecoins may still exist, a recent report suggests that Argentinians are choosing to use black market exchanges, known as “crypto caves,” to purchase US dollar stablecoins. This is an attempt to bypass strict currency controls and the rising inflation of the peso.
On the other hand, the use of digital currency for specific transactions is slowly gaining traction in Argentina. In December 2023, a decree was issued that allowed the use of Bitcoin and other cryptocurrencies in the country under certain conditions. As a result, a local landlord and tenant in Rosario, the third most populated city in Argentina, recently signed a rental agreement where the tenant would pay monthly rent in Bitcoin.
In summary, Argentinians are increasingly turning to Bitcoin as a means of preserving their savings amidst the decline of their national currency. The demand for Bitcoin in Argentina has reached its highest level in 20 months, driven by the peso’s depreciation. While stablecoin purchases have declined, interest in Bitcoin has surged. Additionally, the use of digital currency for specific transactions is slowly gaining acceptance in the country.