Residents Of Argentina Turn To BTC Due To Surging Inflation
For almost six years, Argentina has been struggling against inflation. Triggered by several aspects such as having no or little confidence in the government or central bank overspending, and the devaluation of the peso, (the Argentinean currency) has put a negative impact on the purchasing power of the residents.
This has resulted in up to 37.3% of the country’s population moving below the poverty line, along with the expenditure of the savings of many others. To confront this situation, several Argentinean citizens have moved toward BTC (Bitcoin) as well as the cryptocurrency to have a hedge against nearly 60% inflation, notwithstanding the market which has been soaked in red for many recent months and the prohibition put by the central bank over the financial organizations in the case of utilizing digital assets.
As cited by Reuters, a report that was published by Americas Market Intelligence pointed out that the penetration of crypto in the Argentinean zone has touched nearly 12%, which is two times bigger than that of Mexico, Peru, as well as the rest of the countries present in the region. Apart from BTC, the residents of Argentina have been making a move toward stablecoins to utilize them as a source of storing value in the USD, particularly due to the imposition of some stringent capital controls by the authorities over the services provided by the foreign exchanges.
In December, when Vitalik Buterin (the founder of Ethereum) went to Argentina, he mentioned that the adoption of cryptocurrency throughout the country was skyrocketing and a significant escalation was additionally being witnessed in the stablecoin adoption. He warned against the thing that the respective situation could be altered if some serious issues would be generated because of the United States dollar. On a general level, the nation seems to be dealing cautiously with the regulation of digital assets.
In a YouTube interview that occurred in the previous year, Alberto Fernandez (the President of Argentina) stated that a huge debate has been targeting the subject of cryptocurrency as it has become a worldwide discussed topic and there is a requirement to be cautious in this respect. While referring to the benefits provided by crypto, he disclosed that it is helpful as it assists in hedging against inflation. As per him, crypto can be taken as a steady asset.
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