Argentinians are increasingly turning to Bitcoin to protect their savings as the Argentine peso continues to weaken. According to a recent report, demand for Bitcoin in Argentina has reached its highest level in 20 months.
Bloomberg reported that nearly 35,000 customers in Argentina bought Bitcoin in the week ending March 10, double the weekly average compared to 2023. This surge in demand is largely due to the ongoing decline of the Argentine peso against the US dollar.
Currency Decline Sparks Interest in Bitcoin
Over the past year, the value of the Argentine peso against the US dollar has dropped fourfold. This decline has prompted many Argentinians to seek alternative stores of value, such as Bitcoin.
Lemon Cash isn’t the only platform experiencing increased demand. Other major exchanges in Argentina, including Ripio and Belo, have reported similar trends.
The CEO of digital wallet Belo, Manuel Beaudroi, noted a shift in consumer behavior, with more people opting to buy Bitcoin over stablecoins due to Bitcoin’s recent price surge.
Growing Interest in Crypto Usage with Argentinians
Despite regulatory challenges, the use of digital currencies for transactions is slowly gaining traction in Argentina. In December 2023, a decree aimed at economic reform and deregulation paved the way for the use of Bitcoin and other cryptos in certain transactions.
Following the regulatory changes a landlord and a tenant in Rosario, Argentina, sealed a rental agreement where the tenant would pay monthly rent in Bitcoin, showcasing a growing acceptance of cryptocurrency in real-world transactions.
