Argentina's president has implemented a shock therapy policy aimed at reviving the economy, hoping to make the country one of the world's most dollar-hungry regions. And Argentines are buying Bitcoin to protect themselves from 276% inflation rather than rushing to convert pesos into dollars.
Argentina has one of the highest cryptocurrency adoption rates in the world, with weekly Bitcoin purchases on local cryptocurrency exchange Lemon approaching a 20-month high. In the week ending March 10, there were nearly 35,000 transactions by customers buying Bitcoin on the Lemon platform, double the single-week average last year. Customers of major Argentinian exchanges such as Ripio and Belo are also buying Bitcoin.
Manuel Beaudroit, CEO of digital wallet Belo, said that so far, Bitcoin and Ethereum transaction volume has increased to 10 times that of the same period last year. USD stablecoin purchases fell from 70% to 60% as a rebound in Bitcoin prices attracted more buyers. But it’s worth noting that reports of cryptocurrency scams increased fivefold in February compared to previous months, according to data from the country’s NGO Bitcoin Argentina. (Bloomberg)