The crypto market in Argentina: A roller coaster with strong fundamentals
The cryptocurrency market in Latin America, and specifically in Argentina, is experiencing a phase of significant growth and adoption despite the global bear market. Economic factors, such as instability, have driven the search for these financial alternatives in the form of cryptocurrencies.
In addition, the price of Bitcoin and the proximity of the halving have generated greater interest and optimism in the ecosystem. However, it is important to note that the crypto market remains highly volatile and speculative, which means that any investment in it carries risks that must be considered. And that is why in many countries they begin to talk about regulations to protect users.
Some industry leaders shared their point of view on the crypto world and how the halving, regulations or the Argentine situation could affect what is to come:
Ramiro Raposo, VP of Growth/ Argentina Country Manager of Bitwage -the pioneer platform for payment of fees in cryptocurrencies and digital dollars most chosen by workers, freelancers and service exporters-, pointed out that this year, despite the difficulties that the market is suffering with new regulations and falls of some exchanges, it has shown its strength. “The general fear is always that the market goes down to 0, and I think this latest drop showed that that’s not going to happen,” he said.
And he added that “surely, the halving has a lot to do with this. But it is not only the halving but also that the word cryptocurrency has become more common, attracting not only new investors but also many new users.”
Talking about regulations always gives a bit of uncertainty, according to Raposo. “Obviously if these regulations are for the benefit of the user, they are welcome,” he said. But he also clarified that the fear of losing the freedom that cryptos offer is present and nobody would like that. “The good thing is that if you study a little, you will know how to protect yourself and maintain your anonymity since they are made to maintain that freedom,” he remarked.
On the other hand, the CEO and co-founder of BAG -blockchain technology company that offers tools specially designed for art and culture- , Martín González , recalled: “The last year has had a lot of very negative news for the crypto market. Added to a typical cycle bearmarket, it made for a long winter. But that trend managed to find a footing and the expectations regarding technology, adoption, regulation and the upcoming halving of Bitcoin mean that we are entering a new stage”.
When asked about the national elections and if this could have any impact on the use of cryptocurrencies and tokens in Argentina, he stated: “No candidate is an erudite on the subject, but without a doubt the profiles are different in terms of restrictions. , uses and permits of cryptocurrencies and the financial system in general. The use is going to continue as it is being done today in Argentina, the point is what regulations will be given or not with each possible President in office.
From Rext -a company specialized in real estate tokenization and real economy assets- , Álvaro Castro Burgueño, who is Co-Founder & Chief Portfolio Officer, considered that there are various factors that may be encouraging a slightly more optimistic view of the crypto market: ” On the one hand, the downgrade of the long-term credit rating of the United States by Fitch Ratings may be a variable that is operating. On the other hand, Ripple’s judicial victory before the SEC in which the court considered that the sale of Ripple (XRP) tokens did not constitute a sale of securities, represents a boost to altcoins”.
He added: “MicroStrategy’s announcement to continue buying BTC through the sale of $750 million worth of company stock is likely to have contributed to an appreciation expectation. However, we see a growing interest among crypto investors in diversifying their investments through options that provide balance to their portfolio. This is where we see a great opportunity for Real World Assets (RWA) investments through Tokenization. We offer investors the possibility of investing with their cryptocurrencies (BTC, ETH, DAI, USDT and USDC) in properties in the United States, which offer a return in USD and an interesting appreciation potential”.
Guillermo Escudero, Manager of Strategic Alliances of Cryptomarket -cryptocurrency exchange platform- pointed out that the last semester of the crypto market is optimistic regarding prices. “Also at a temporary level we see that global markets are more stable than at other times. Looking at the rates at a global level, their continuity cannot be guaranteed in terms of monetary stability, and it will be necessary to see how this impacts the markets, since in the past the crypto market had upward reactions to global uncertainties, ”he indicated. .
From the reality that exists in Argentina, one might think that, despite the volatility that the crypto market usually has, it is more convenient than the loss of value of the peso and even the dollar. But is it really so? On this Escudero opined: “Of course, against the Argentine peso it is, given the depreciation rate that it suffers at levels greater than 100% year-on-year. Let us remember that the dollar lowered its interannual inflation below 4% due to the rise in rates by the FED. In itself, it is convenient to have a balanced and diversified portfolio. A part of it must effectively be in liquidity tied to the rate, in dollars, euros, pounds, or any stable fiat currency in relation to its inflation.
But for Argentines, according to Escudero, one of the best alternatives is to “dollarize legally via stablecoins. It should be said that the stock market also offers this possibility via the MEP dollar. But it also makes it possible to pay cross-border obligations without depending on official exchange rates determined by the BCRA and BNA, nor on swift transfers with all the expenses and tax withholdings that this entails. Furthermore, it does not imply the evasion of any commercial act, but rather the optimization of the use of technologies to facilitate trade between parties”.
From Koibanx -a leading company in financial tokenization using blockchain technology- , the CEO & Co Founder, Leo ElduayenHe offered his perspective, taking the focus off the current price of bitcoin and focused his optimistic gaze in another direction: “In general terms, we see more and more integration between the Web3 world and traditional banking and it makes me happy when I see headlines in the newspapers that talk about the adoption of cryptocurrencies and the Web3 ecosystem in general. For example, talking about the launch of new digital wallets to bank segments not captured as n1u or that 50% of the banks in El Salvador process transactions through a Blockchain protocol or that new active wallets on Ethereum were created recently. I believe that this type of adoption and news of Web3 technologies, in the long term, are much more sustainable for the world of crypto than a rise or fall in price at a certain moment,
And he explained: “There are several Web3 solutions that can help, such as asset tokenization, which allows dividing an asset into smaller units, which facilitates its partial sale or participation in shared investments, and democratizes access to assets that were previously limited to high net worth investors which can provide greater liquidity and access to investments for the general population. This could help diversify investment portfolios and attract both local and foreign investors. To give a real example, at Koibanx we tokenize 6 different types of assets: commodities, financial securities, fiat currencies, cryptocurrencies, securities and documents”, he enthusiastically concluded.