Amid Argentina’s rising crypto adoption, the country is experiencing soaring hyperinflation that has increased the prices of goods and services. However, a recent survey shows that Argentina is seeing increasing digital asset use, with 17% of citizens purchasing cryptocurrency last year.
A Growing Demand for Stablecoins
According to the data from the recent survey conducted in some selected Latin American countries by Market Research, 50% of residents have bought stablecoins, while 17% have adopted other crypto assets.
The study involved 2,400 smartphone users surveyed in November 2022, with 17% of the adult population reporting that they have bought digital assets as an investment or for savings in the last 12 months.
Furthermore, the same platform conducted a similar study in November 2021, where 12% of the respondents stated that they had bought crypto tokens as an investment. Hence, the 5% increase from the new survey results is likely due to rising inflation in the country.
Argentina had an over 90% inflation rate, more than any other country last year, with residents finding it difficult to save due to the steady decline of the Peso’s worth. From the survey, 53% of Argentinians disclosed that they had bought crypto assets last year, particularly USD-backed stablecoins.
A further 46% of the respondents stated that they purchased the tokens to protect their funds against rising inflation. Despite the region having a high transaction volume involving over-the-counter trading and peer-to-peer activities, only 21% of respondents stated that they had used either method for their crypto purchases.
Also read:Interestingly, 79% of respondents used significant crypto exchanges like Binance, KuCoin, and others to buy their virtual coins.
Crypto Popularity in LATAM
According to a crypto payment services provider report, more Argentinians are opting to work for companies that pay in cryptocurrency. In addition, the increasing number of people looking to work in exchange for crypto assets over fiat has led to the rise of crypto adoption in the LATAM (Latin America) region.
Last July, investors reacted to the news of the resignation of Argentina’s economy minister by accumulating more USDT stablecoins. In a move to stabilize the dwindling value of the Peso, the government implemented caps on the amount of foreign currency citizens could buy at banks.
Nevertheless, that action had little impact as the government did not anticipate mass demand for Tether’s USDT. As a result, citizens flocked to crypto trading platforms to buy USDT, which led to the popularity of other crypto assets like Bitcoin in the region.
Apart from Argentina, data shows that other nations within the LATAM ( Latin America) region show a high crypto adoption figure, with 14% of Brazilians and Colombians revealing that they have joined the crypto bandwagon. However, the reverse is the case in some countries, such as Mexico, Peru, and Chile.
Each of them has a less than 10% adoption rate. Experts believe that the high crypto adoption in LATAM is mainly due to the economic and political instability in that region.
With national currencies losing value due to skyrocketing inflation, many moved to cryptocurrency to save or invest their money.
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