Argentina Becomes Latin America’s Leading Hub for Cryptocurrency Inflows

Argentina has emerged as the leading Latin American nation for cryptocurrency inflows, surpassing Brazil.

A Chainalysis report from October 9 indicates that between July 2023 and June 2024, Argentina’s crypto deposits reached approximately $91 billion, compared to Brazil’s $90 billion.

This surge in cryptocurrency use in Argentina is largely driven by ongoing inflation and currency devaluation, prompting citizens to seek alternative means of savings, such as dollar-pegged stablecoins.

Argentina has developed one of the largest stablecoin markets globally, accounting for 61.8% of its transaction volume, surpassing Brazil’s 59.8% and well above the global average of 44.7%.

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Retail-sized stablecoin transactions, especially those under $10,000, are growing rapidly in Argentina, reflecting a trend of using these digital assets as a hedge against economic instability.

Tether has shifted its focus to emerging markets like Argentina, acknowledging the demand for digital currency as a more convenient option.

Despite its growing crypto presence, Argentina has yet to establish comprehensive regulations for the cryptocurrency market, which remains largely unregulated.

Alexander Zdravkov