• 17% of people in Argentina bought cryptocurrency in the past 12 months due to soaring inflation.
• 53% of those surveyed said they bought USD-pegged stablecoins to protect their savings against inflation.
• 79% of respondents said they used major crypto exchanges to buy their coins.
Crypto adoption in Argentina has been steadily rising in recent years, due to the country’s soaring hyperinflation. A survey conducted in November 2022 by Americas Market Intelligence revealed that 17% of adults in Argentina had bought cryptocurrencies in the past year as a form of savings or investment, up from 12% in the same survey conducted in November 2021.
The survey showed that 53% of Argentine respondents who bought cryptocurrencies in the last year had chosen USD-pegged stablecoins as a way of protecting their savings against inflation. Inflation in Argentina last year was the highest in the world, at over 90%.
The survey also revealed that 79% of respondents in the country said they used major crypto exchanges to buy their coins, with only 21% using over-the-counter or peer-to-peer transaction methods.
The increasing crypto adoption in Argentina is also evidenced by the fact that more Argentineans than ever are choosing to work for companies that pay them in crypto rather than fiat. This trend was further boosted in July 2022 when investors responded to news of the economy minister’s resignation by buying tether (USDT).
The growing popularity of cryptocurrencies in Argentina demonstrates the potential of digital currencies to provide a safe haven in times of economic turmoil and hyperinflation. However, this trend is not limited to Argentina. In Latin America, stablecoins have been gaining popularity, with citizens of other countries in the region also choosing to use them to protect their savings against inflation. For example, in Brazil, the country’s central bank reported that the value of stablecoins in circulation had increased by more than 50% in less than a year.
The rise in crypto adoption in Argentina and across Latin America is a testament to the growing demand for digital currencies and their potential to provide an alternative to traditional forms of money. As more people turn to cryptocurrencies to protect their savings, it is likely that the adoption of digital currencies in the region will continue to grow.