Argentina, which recently elected self-described “anarcho-capitalist” Javier Milei as president, has been in the market for the past six months, according to a report from Bitso, a cryptocurrency exchange founded in Mexico. It is said that the largest number of stablecoins are purchased and held in Latin America.
In response to the severe economic crisis and plummeting value of the peso, 60% of Argentine crypto purchases on Bitzo are made up of dollar-based stablecoins Tether (USDT) and USD Coin (USDC), while Bitcoin (BTC) purchases accounted for only 13%.
This is high compared to Colombia, Brazil, and Mexico, where stablecoin purchases ranged from 31% to 40% of total crypto purchases.
Bitzo noted that Argentines are dealing with current “political and economic conditions that encourage the purchase of stablecoins as an alternative to inflation and currency devaluation.”
Argentina is Latin America's second-most populous country and third-largest economy, but it has long been plagued by economic problems. The annual inflation rate rose to 211.4% in 2023.
According to a 2023 Chainalysis report, Argentina ranked second in Latin America and 15th in the world in terms of crypto penetration.
Although he stopped short of fully endorsing Bitcoin, the new President Milais made some friendly suggestions, calling it “money going back to its original creators, the private sector.” The president also called the central banking system a “fraud.”
According to Bitso, the exchange has more than 8 million users across Latin America.
｜Translation and editing: Rinan Hayashi
｜Image: Angelica Reyes, Unsplash
｜Original text: Tether and Circle Stablecoin Purchases Dominate in Argentina