Argentina’s Bitcoin Demand Hits Two-Year High: A Comprehensive Analysis
Bitcoin continues to see heightened demand among Argentinians as the Argentine peso (ARS) has lost four times its value against the US dollar in the past year, plummeting from $0.0049 per ARS in March 2023 to $0.0012 at present. This depreciation has spurred Argentinians to safeguard their savings amid the ongoing devaluation of their national currency, leading to the country experiencing its highest Bitcoin demand in the past 20 months. According to a recent report by Bloomberg citing data from the cryptocurrency exchange Lemon Cash, approximately 35,000 customers in Argentina purchased Bitcoin in the week leading up to March 10, doubling the weekly average compared to 2023. This surge in demand is primarily attributed to the continuous decline of the national currency.
Over the last twelve months, the value of ARS against the US dollar has quadrupled, dropping from $0.0049 per ARS in March 2023 to $0.0012 at the time of publication. However, Lemon Cash is not the only platform witnessing increased demand. Other major exchanges in Argentina, such as Ripio and Belo, have reported similar trends. According to Belo’s CEO, Manuel Beaudroi, the purchase of stablecoins in Argentina has decreased from 70% to 60% as the recent rise in Bitcoin prices has attracted more attention.
As individuals observe the rising value of digital currencies, they opt to buy Bitcoin, considering it over stablecoins, which are frequently used for transactional purposes abroad. Beaudroi also mentioned that Belo has seen a tenfold increase in Bitcoin and Ether volumes in 2024 compared to the same period last year. Despite this, the recent report indicates that interest in stablecoins may still exist, as Argentinians likely turn to well-known domestic exchanges for their purchases.
On February 12, Coin Telegraph reported that Argentinians are utilizing black market exchanges, known as “crypto caves,” to buy dollar-denominated stablecoins in an effort to escape stringent currency controls and rising inflation of the ARS. The use of digital currency for specific transactions is gradually gaining traction within the country. In December 2023, Diana Mondino, Minister of International Trade and Worship, claimed that a decree aimed at economic reforms and deregulation would allow the use of Bitcoin and other cryptocurrencies under certain conditions.
Following this decree, a local landlord and tenant in Rosario, Argentina’s third most populous city, signed a rental agreement where the monthly rent is paid in Bitcoin.
