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[Blockchain Today Reporter Han Ji-hye] Argentina’s economic downturn due to high inflation, declining currency value, and lack of US investment costs has proven to have had a significant impact on cryptocurrencies.
Argentines seeking a safe haven for assets are investing in Bitcoin (BTC), Tether, Ethereum (ETH) or Dai to respond to the recent economic crisis, according to a report by the US economic journal International Business Times.
“Since 2020, the number of user accounts investing in cryptocurrencies in Argentina has increased tenfold,” said Maximiliano Hinz, Latin American director of cryptocurrency exchange Binance. Argentina, which has a population of 45 million, is known to currently have about 2 million cryptocurrency trading accounts.
Argentina has been experiencing a recession with an average of 45% inflation since 2018, and in 2020 its GDP declined at 9.9%. As a result, two out of five people are in poverty, and the unemployment rate reaches 11%.
“It’s no coincidence that Argentina and Venezuela, countries with high inflation, are the main cryptocurrency regions in South America,” said digital asset expert Marcos Zocaro.
Sebastian Valdecantos, economist and founder of the online Argentine credit system Moneda PAR, said, “Previous cryptocurrencies may have been a feast of tech wizards, but the trading platform has evolved to connect to the public without financial training.” .
On some platforms, you can buy and sell with just two clicks. In addition, it is no longer limited to the rich, Argentines of all backgrounds and ages can participate and invest from 1 pesos.
“Customers who previously feared doing fixed deposit transactions with banks are buying cryptocurrency without fear of risk,” said Nephew.
In Argentina, it is becoming more and more common to buy and sell everything in cryptocurrency in the current war, from cars and second-hand clothing to English classes.
Meanwhile, e-commerce giant Mercado Libre announced last week that it will be able to use Bitcoin to buy Argentine real estate (a commodity traded only in US dollars).