Argentina surpasses Brazil in crypto revenues – chain analysis
Argentina has become one of the fastest growing crypto markets in Latin America (LATAM) in terms of user-estimated crypto revenue.
Crypto users in Argentina invested the highest amount of crypto in Latin America between July 2023 and June 2024, with revenues totaling $91 billion, Chainalysis reported on Oct. 9.
With an estimated $91 billion in crypto revenue, Argentina has overtaken Brazil in total crypto value, slightly ahead of Brazil's estimated $90 billion at the time.
Latin American countries that adopted from July 2023 to June 2024, ranked by crypto value. Source: ChinaLiz
Argentina's stablecoin activity is 17% higher than the global average.
The rapid growth in crypto adoption in Argentina amid a battle against inflation and the destruction of the local currency is forcing Argentines to look for alternative ways of saving, including using the US dollar or the dollar pegged stablecoin.
According to Chinalysis, Argentina's stablecoin market is one of the largest in the world by the share of stablecoin transactions. He is also among the leaders in the Latham region.
Between July 2023 and June 2024, Latham's retail volume of transactions by asset type and global average share.
Between July 2023 and June 2024, Argentina's stablecoin transaction volume reached 61.8%, slightly higher than Brazil's 59.8%. Argentina's stablecoin activity is higher than the global average of 44.7%, but lower than Colombia's 66%.
The report found that Argentina's retail volume of stablecoin transactions – those under $10,000 – is growing faster than any other asset class. This trend suggests that Argentines are relying on statcoins to protect their money against inflation and currency instability. The report said.
“Their interest in stablecoins highlights the role of crypto in unstable markets and how citizens can take better control of their financial future by accepting cryptocurrency regardless of how public monetary policy is.”
Tether prioritizes markets like Argentina over developed economies
Argentina's growing Storicoin activity comes as stablecoin issuer Tether focuses more on emerging markets like Argentina than on developed economies like the US.
Tether USDT (USDT), the world's largest US dollar-pegged stablecoin operator, recognizes Argentina's need for a “digital dollar,” CEO Paolo Arduino told Cointelegraph last week.
“People want to hold that dollar digitally rather than in cash because it's more convenient,” Arduino said.
Related: Binance ‘Fully Available' in Argentina After VASP Registration
Argentina has positioned itself as a crypto-friendly country. In the year By the end of 2023, Argentina will allow the use of Bitcoin (BTC) in legally binding contracts after pro-Bitcoin President Javier Maley took office in December 2023.
Although Argentina is one of the most active states in the use of cryptocurrency, the local government is yet to regulate the growing market.
The monthly stable coin is traded against the Argentine peso (ARS) on Bitso with the ARS price. Source: Chain analysis
According to Forbes, Argentina has struggled to provide regulatory services to its citizens since July, despite the government's efforts to introduce regulations.
While developed economies like Europe have pushed for stablecoin regulations in recent years, Argentina still hasn't introduced a stablecoin framework.
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