According to a recent report by the Mexican cryptocurrency exchange Bitso, Argentina has emerged as the leading purchaser and holder of stablecoins in Latin America over the past six months. The report analyzed cryptocurrency trends in several Latin American countries including Argentina, Colombia, Brazil, and Mexico.
It found that amidst economic turmoil, 60% of Argentines’ crypto purchases on Bitso were stablecoins like USDT and USDC, compared to only 13% for Bitcoin. This contrasts with other countries in the region where stablecoin purchases were 31-40% of crypto buys. Stablecoins have become some of the fastest-growing cryptocurrencies in Latin America.
The report attributes Argentina’s high demand for stablecoins to its economic context, with citizens seeking alternatives to combat high inflation and currency devaluation. Argentina has faced major economic challenges and hyperinflation exceeding 200% in 2023. This creates a strong incentive for consumers to find more stable options to preserve their wealth. Argentines quickly convert funds to digital dollars in response to the peso’s continual devaluation.
Despite economic struggles, Argentina has shown considerable crypto adoption, ranking 2nd in Latin America. The recent election of President Javier Milei signals a potential policy change, though he has not fully endorsed Bitcoin. Overall in Latin America, Bitcoin remains the preferred cryptocurrency, accounting for 53% of portfolio holdings. Stablecoins ranked 2nd in preference, with growth in Colombia and Argentina. Mexico and Brazil have a lower stablecoin presence. Colombia saw the highest growth in exchange users in the region.
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