With over $90 billion worth in crypto inflows, Argentina has been declared Latin America’s leading market for cryptocurrency, dethroning Brazil. The growing instability and unpredictability in the economy as well as inflation has forced people of the country to explore the decentralized world of crypto, immediately making them key players in their region. In fact, it is responsible for almost 25% of the total crypto inflows of Latin America, outweighing that of Brazil at 18%, data from Chainalysis shows. It’s the need for an alternative to banking that drove the nation to adapt digital assets and decentralized banking.

Economic Uncertainty Driving Adoption

Its crypto dominance came from their fair share of economic struggles, problems such as inflation rates due to the fluctuating value of currency. The allure of cryptocurrency was great in the country, with cryptocurrencies such as Bitcoin offering more stable value and worth compared to the rapidly declining local currency. The use of crypto has been rampant in the country, starting out with only investments, yet became accepted enough to be used for day-to-day transactions.

Source: Chainalysis

For many Argentinians, cryptocurrencies have become a lifeline as an increasing number of them are finding shelter from the current inflation through the use of stablecoins, like Tether (USDT). Even transactions related to basic things, like remittances between family members living abroad, are increasingly finding their way through crypto platforms that facilitate faster and cheaper alternatives compared to traditional services offering remittances.

Argentina’s Growing Crypto Ecosystem

The lead and gap that Argentina has in

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Author: Christian Encila