Chainalysis: Argentina's soaring inflation leads to a surge in stablecoin adoption

Cryptocurrency adoption is growing in Argentina, with a correlation between stablecoin use and currency depreciation in the country, according to research released Wednesday by blockchain security firm Chainalysis. Argentine stablecoins account for 61.8% of all crypto transactions, higher than Brazil's 59.8%, with only Colombia's share higher at 66%. The surge in Argentina's use of such assets is due to the country's citizens using stablecoins to gain exposure to the U.S. dollar, the report said. Argentina has one of the highest inflation rates in the world. "(Argentines') interest in stablecoins highlights the role of cryptocurrencies in volatile markets and how citizens can better control their financial future by accepting cryptocurrencies, regardless of official monetary policy," the report said. The report added that the depreciation of the Argentine peso often leads to an increase in stablecoin transactions on crypto exchanges. (Decrypt)