Argentina Replenishes Inflation With Cryptocurrencies
Residents of Argentina are increasingly interested in Bitcoin amid inflation and a gradual decline in the country's economic indicators. The head of Binance's Latin America division noted a tenfold increase in active trading accounts since 2020.
Of the 45 million inhabitants of Argentina, there are more than 2 million cryptocurrency trading accounts today. Against the background of the country's economic recession, its inflation has exceeded 45% over the past 3 years. At the same time, Argentina's GDP contracted by almost 10% over the past year. Two out of five residents are below the poverty line, and unemployment is 11%.
It is these financial and economic indicators that have led the locals to do their best to compensate for the impact of inflation on everyday life. They find salvation not only in Bitcoin but also in other cryptocurrencies. Digital currencies are helping Argentines avoid problems with interest rates and a Government-set 200 dollar purchase limit per month. By the way, problems with the dollar have become another reason why Argentina and Venezuela are the main “cryptocurrency poles” in South America.
According to one Argentine economist, cryptocurrency platforms act as a "bridge" between "technology wizards" and people without "financial education." Since on some trading platforms, it is enough to make a few clicks to make the first investment. In addition, the exchanges equalize the poor and the rich, because the amount of deposits starts at one peso.
Today, even older Argentines are beginning to take an interest in digital currency. Considering that these same people used to be afraid to trust their money even to banks this is definitely progress. However, many of them are not interested in Bitcoin, but in more stable currencies to insulate themselves from the risk of sharp price surges.
On the basis of interest in cryptocurrencies, the giant Mercado Libre trading platform said that now everyone can buy real estate in the country with Bitcoins. In addition, according to locals, digital currencies can be used to buy almost everything in the country from English courses to used cars. And by paying two Bitcoins, you can now become the owner of an apartment in Buenos Aires.
It sounds like Argentina is confidently striving to become an enthusiast cryptoheaven. But will people be able to make up for the losses due to the depreciation of the national currency?