Crypto adoption is growing in Argentina, with a correlation between stablecoin use and the devaluation of the country’s currency, according to a new report.
Research released Wednesday by blockchain data firm Chainalysis showed that Argentina’s stablecoin use is among the highest in the region, with the South American country’s share of stablecoin transaction volume at 61.8% of all crypto transactions—higher than Brazil’s 59.8%. Only Colombia landed higher at 66%.
The reason for Argentina’s surging use of such assets, according to Chainalysis, is that people in the country—which has one of highest rates of inflation in the world—are using stablecoins to get exposure to U.S. dollars.
“[Argentines’] interest in stablecoins highlights the role of crypto in unstable markets and how citizens are able to take better control of their financial futures by embracing cryptocurrency, regardless of official monetary policy,” the report said.
It added that the Argentine peso’s decreasing value regularly led to an increase in stablecoin trading on crypto exchanges.
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Author: Mathew Di Salvo
