What is driving the growth of cryptocurrency technology in Argentina?
Concern about the economic situation facing Argentina has sparked the interest of many in the cryptocurrency market, and the perception is even growing that it is a viable option to protect purchasing power amid the inflation facing the country.
“Factors such as inflation and economic problems, limited access to traditional financial services, and the monetary crisis, where we already have a blue dollar that has surpassed the $1,000 barrier, certainly influence and impact more and more people who choose through a safe environment that is not subject to traditional market conditions or the regulations of the government in power, as is the case with cryptocurrencies. And this is evident: people want to take care of their assets, not lose them overnight,” explains Guillermo Escudero, Global Strategic Alliances Manager at Cryptomarket.
According to the data provided by this Latin American exchange regarding market growth in the last quarter (August – October), it was observed that the volume grew at a rate of 13% from August to September and almost 20% from September to October.
“With regard to the choice of cryptocurrencies as a refuge against inflation, and according to behavioral indicators of Cryptomarket users , we observe that there is a strong inclination towards so-called stablecoins, which correspond to cryptocurrencies backed by stable assets,” Escudero adds
According to its records, in the last 30 days, 52% of the transaction volume corresponded to stable cryptocurrencies or the so-called digital dollars. Volume that has been increasing since the last 3 months was 45%, and a year ago it was only 37%
For this reason, it is not strange that Argentine companies have begun to adopt cryptocurrencies as a form of payment, which has contributed to the growth of technology in the country.
In terms of international transfers, there is no doubt that, by far, cryptocurrencies are a more efficient and economical option for sending and receiving international remittances and transfers, which is relevant for a population that often has family members abroad or people who They provide services abroad.
“The interest and need of Argentines to work for other countries and find a solution, in this case in cryptocurrencies, that allows them to enjoy the fruit of their work without losing in commissions and exchange differences is evident. We have seen a sustained year-on-year growth of 100% since 2020 in Argentine users,” says Ramiro Raposo, VP of Growth at Bitwage – the pioneering and leading platform in payment of fees in digital dollars most chosen by service exporters in Argentina and the world-
Although cryptocurrencies are a global trend of sustained growth, there are several additional reasons why Argentines have been able to glimpse an opportunity in cryptocurrencies and that is why more and more people are joining their adoption and it would seem That will continue to be the case next year.