The Argentinian economy has been going through quite a bit for quite some time. The poor state of the economy is felt throughout the country. Even children in Buenos Aires are aware of the dollar exchange rate and the level of inflation. The current economic situation has major consequences for the people of Argentina. About 42% of the Argentine population lives below the poverty line. This is more than 27% higher than just three years ago.
Not only poverty and unemployment are the result of a poorly functioning economy. There is also another phenomenon to be noted in Argentina. According to AFP News, the Argentine economy is a motive for many Argentines to look for new ways to avoid the gigantic inflation. Many of these people therefore seek refuge in the world of cryptocurrencies.
According to Maximiliano Hinz, the director of Binance in South America, the amount of user accounts to invest in cryptocurrencies has increased by a factor of 10 since 2020. We have seen this trend in South America for some time. For some time now, bitcoin (BTC) trading volume in South America has been breaking record after record.
In the past, Argentines still invested in the US dollar, but this too has recently ceased to be a financially profitable investment for Argentines. The banks pay extremely low interest rates and the government has even imposed a monthly buying limit that states that citizens should not spend more than $ 200 per month. According to Hinz, the increase in the number of user accounts is a logical consequence of this economic situation.
It is clear that Argentines are increasingly using cryptocurrencies. Not purely as an investment, but also as a means of payment. An Argentinian e-commerce giant recently announced that it would accept bitcoin as payment for real estate, a sector previously dominated by the US dollar.
In an uncertain economic climate, it is precisely the cryptocurrency exchanges that “have evolved to build bridges to a population with no financial education,” said Sebastian Valdecantos, founder of Argentina’s online credit system Moneda. And we keep seeing it again. When a national economy goes badly, the use of cryptocurrencies explodes in that country.