Argentina’s demand for bitcoin is still high since the ARS has dropped four times in value compared to the US dollar in the past year, from 0.0049 USD in March 2023 to 0.0012 USD at the moment.
As a result of Argentines’ attempts to hold onto their assets amidst the continuous depreciation of their national currency, the Argentine peso (ARS), the country has experienced its biggest demand for Bitcoin in 20 months, according to a recent report.
The cryptocurrency exchange Lemon Cash provided data to Bloomberg on March 20, which showed that about 35,000 consumers in Argentina bought Bitcoin in the week ending March 10. This is double the weekly average when compared to 2023. The continuous devaluation of the country’s currency is a significant contributing cause to the rise in demand.
The value of ARS in relation to the US dollar has severely declined over the last year, falling from 0.0049 USD per ARS in March 2023 to 0.0012 USD at the time of publication.
It was pointed out, though, that Lemon wasn’t the only platform experiencing a rise in usage. Similar patterns were documented by Belo and Ripio, two other significant Argentine exchanges.
The CEO of Belo, a digital wallet, Manuel Beaudroi, claims that while interest in Bitcoin increased recently, stablecoin purchases in Argentina fell from 70% to 60%.
“A user chooses to purchase Bitcoin based on news reports indicating an increase in value, whereas stablecoin is more practical and frequently utilised for transactions, such as sending money overseas.” In addition, he stated that Belo has witnessed a “tenfold so far in 2024 compared to the same period last year” growth in Bitcoin and Ether volume.
But a new analysis indicates that stablecoins may still be of interest because Argentines may be opting not to buy them on the well-known exchanges in their nation.
According to a report on February 12, Argentines are attempting to evade stringent currency regulations and the increasing inflation of their country by purchasing USD stablecoins through underground markets, also referred to as “crypto caves.”
However, the nation is gradually seeing a rise in the use of digital currency for some kinds of transactions.
The usage of Bitcoin and other cryptocurrencies in the nation would be permitted under specific circumstances, according to a December 2023 statement made by Diana Mondino, the minister of foreign affairs, international commerce, and religion. The decree was intended to decentralise the economy.
Tenant in Rosario, Argentina’s third-most populous city, signed a rental agreement with a local landlord after the judgement, agreeing to pay rent each month in Bitcoin.