The central bank's prohibition of financial institutions using digital assets isn't stopping Argentines from exploring crypto utilization.
For 6 years now, Argentina has been intensively fighting inflation. For instance, the devaluation of the Argentine peso has reduced citizens' purchasing power due to a variety of issues, including a lack of faith in the central bank and government expenditures. The Argentine peso’s (ARS) devaluation has also reduced citizens’ buying power due to a variety of issues, including the disbelief in the central bank and government expenditures.
Because of this, around 40% of Argentine citizens were pushed into poverty, whereas the other part of the population simply lost their funds. Even though the crypto market is in turmoil as it’s losing billions of dollars every week, a number of residents are exploring cryptocurrencies such as Bitcoin (BTC) to fight the evident increase in inflation.
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On top of that, Argentines also see stablecoins more as a safe haven to store value in the US dollar. Back in December, the founder of Ethereum (ETH) Vitalik Buterin implied that both, cryptocurrencies and stablecoins are becoming more prominent in Argentina.
Moreover, discussing the adoption of crypto further, during an interview with Alberto Fernandez, Argentine President, he suggested that the country is treading lightly when it comes to digital asset legislation. He also expanded on such a situation during one of his interviews posted on YouTube back in August 2021:
There’s a huge discussion about cryptocurrencies, it’s a global debate and I must confess it’s a matter of caution.
According to various statistics, Argentina saw a 12% increase in crypto adoption.
The President also implied that cryptocurrencies have their own benefits and can be truly helpful in controlling inflation, adding that “in a sense, it’s a steady asset.”
On another note, back in April, annualized inflation hit around 60% and analysts predict it might reach even 70% in the following months.
Earlier this year, the Mayor of Serodino Juan Pio Drovetta shared his plans to bring in blockchain technologies. The residents of a small town in Santa Fe attempted to pull the local economy out of the gutter through cryptocurrency mining.
