Argentina Records Rising Cryptocurrency Adoption Among Citizenry Amid Rising Inflation
A recent report from Americas Markets Intelligence shows that Argentina has recorded some significant growth in recent times in cryptocurrency adoption.
Carried out in 2021, the survey polled 400 different subjects via their smartphones and discovered that 12 in 100 Argentinians (or 12%) invested in crypto last year alone. While some could argue that this might be a low figure, Argentina ranks higher than other South American nations in crypto adoption. In 2021, Brazil had a crypto adoption rate of 7%, while Mexico had only 6%. Argentina also ranked above the average adoption rate of Latin America of 8%.
Analysts explained that this increase in crypto adoption came due to several prevailing economic factors in the country, including inflation and monetary restrictions. Regardless, Argentina’s adoption rate fell short of the 16% recorded in the US.
The survey also evaluated possible reasons behind the rise of crypto in Argentina above the average in Latin America and discovered three potential reasons.
Three Reasons Behind the Increased Adoption of Cryptocurrency in Argentina
The first reason is that Argentina has recorded a significant level of digitization of industries and society, leaving traditional banking adoption in the dust. The report detailed:
“Persistent mistrust of banks has limited the growth of digitization and kept the use of cash even as consumers feel comfortable with digital tools.”
The second factor was the rapidly increasing inflation and monetary volatility in the country, which made digital assets like Bitcoin and Ethereum significantly attractive for savings and investment despite their volatile nature.
Finally, the last reason the survey presented as the driver behind crypto adoption in Argentina was the exorbitant fees attached to remittances. The South American nation currently charges a 5.5% premium on foreign remittances. Cryptocurrency helps citizens bypass this remittance fee while providing even speedier transactions.
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