Argentina, one of the fastest-growing crypto markets, has surpassed Brazil as the top Latin American country in terms of estimated user inflows.
Chainalysis reported on October 9 that Argentine crypto users deposited the largest amount of cryptocurrencies in Latin America from July 2023 to June 2024, with total inflows reaching $91 billion.
With an estimated $91 billion in crypto inflows, Argentina has overtaken Brazil in total crypto received, slightly surpassing Brazil’s estimated $90 billion during the same period.
Argentina’s stablecoin activity is 17% higher than the global average
The rapid growth in cryptocurrency adoption in Argentina comes amid a decades-long battle against inflation and local currency devaluation, with Argentines increasingly looking to use alternative savings options, such as using the U.S. dollar or dollar-pegged stablecoins. I am forced to find a way.
According to Chainalysis, Argentina’s stablecoin market is one of the largest in the world in terms of share of stablecoin transactions. It is also one of the leaders in the Latin American region.
Argentina’s share of stablecoin trading volume from July 2023 to June 2024 was 61.8%, slightly higher than Brazil’s share of 59.8%. Argentina’s stablecoin activity is well above the global average of 44.7%, but lower than Colombia’s 66%.
The report highlighted that Argentina’s share of retail-scale stablecoin transactions (transactions less than $10,000) is growing faster than any other asset type. This trend suggests that Argentines are relying on stablecoins to protect their finances from inflation and currency instability. The report states:
“Their interest in stablecoins highlights the role of cryptocurrencies in volatile markets and how citizens can better control their financial future by embracing cryptocurrencies, regardless of official monetary policy.” ”
Tether prioritizes markets like Argentina over developed countries
The growth in stablecoin activity in Argentina comes as stablecoin issuer Tether focuses on emerging markets like Argentina rather than developed countries like the United States.
Tether, the operator of Tether USDt USDTUSD, the world’s largest USD-pegged stablecoin, recognized the need for Argentina’s “digital dollar,” CEO Paolo Ardoino told Cointelegraph last week. Ta.
“People want to hold that dollar in digital form rather than in cash because it’s much more convenient,” Ardoino said.
Argentina is increasingly positioning itself as a crypto-friendly country. Argentina officially allowed the use of Bitcoin (BTC) in legally binding contracts in late 2023 after pro-Bitcoin President Javier Millay took office in December 2023.
Despite Argentina becoming one of the most active jurisdictions in the use of cryptocurrencies, local governments have yet to regulate the growing market.
According to Forbes, Argentina was struggling to provide regulated cryptocurrency services to its citizens as of July, despite multiple efforts by the government to introduce regulations.
Although developed countries such as Europe have promoted stablecoin regulation in recent years, Argentina has not yet introduced a stablecoin framework.
