- A key contributor to the surge is the persistent depreciation of the national currency.
- Argentines are reportedly trying to avoid tight currency restrictions and the increasing inflation.
According to a recent study, Argentina has had its largest demand for Bitcoin (BTC) in 20 months, as Argentines try to hold on to their assets amidst the continued collapse of the Argentine peso, the national currency.
Almost 35,000 Argentine clients bought Bitcoin in the week ending March 10, according to statistics published by Bloomberg on March 20 from crypto exchange Lemon Cash. This is double the weekly average compared to 2023. A key contributor to the surge in demand is the persistent depreciation of the national currency.
Massive Surge in Demand
From $0.0049/peso in March 2023 to $0.0012/peso at the time of publishing, the value of the peso versus the US dollar has fallen precipitously during the last twelve months. But it was pointed out that Lemon wasn’t the only exchange seeing a demand increase. Ripio and Belo, two other important Argentine exchanges, also saw comparable patterns.
Stablecoin purchases in Argentina fell from 70% to 60% because of the increased interest in Bitcoin’s recent price boom, according to Manuel Beaudroi, CEO of the digital wallet Belo. Bitcoin and Ether volume has increased “tenfold so far in 2024 compared to the same period last year,” he said, adding that this was seen by Belo.
A new analysis, however, implies that stablecoins may continue to attract attention, since some Argentines may opt out of buying them on the country’s popular exchanges.
Argentines are reportedly trying to avoid tight currency restrictions and the increasing inflation of the peso by purchasing U.S. dollar stablecoins on underground markets, which are referred to as “crypto caves,” according to a report from February.
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