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While Argentina has heavily promoted the dollarization of its economy and rejected invitations from BRICS countries, Argentine citizens may have already abandoned the dollar in favor of Bitcoin. In fact, a new report from the local cryptocurrency exchange Lemon shows that the country's savings strategy leans more towards digital assets compared to the dollar.
Bitcoin investment has replaced Argentina's longstanding practice of exchanging pesos for dollars. Specifically, the volume of BTC purchases has reached its highest level in over a year as the country continues to seek better alternatives to the dollar. This transition comes amidst the recent election of President Javier Milie, a supporter of US dollarization.
Bitcoin in Argentina:
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Is Argentina Looking for Bitcoin Instead of the Dollar?
Argentina has been making headlines in recent months. As early as November 2023, the country elected the progressive Javier Milie as its new president. As a staunch advocate for Bitcoin, he has expressed a desire to dollarize the country's economy. Additionally, following his election, Milie rejected the invitation to join the BRICS alliance.
Since then, under the new regime, the country has been facing currency devaluation. Subsequently, despite Argentina's withdrawal from BRICS, it appears to be abandoning the dollar in favor of Bitcoin. At least, compared to the dollar, there has been a significant influx of Bitcoin investment.
According to Bloomberg, despite some adjustments in Bitcoin prices this week, the Argentine cryptocurrency exchange Lemon reported 35,000 transactions in the week of March 20. Additionally, Bitcoin purchases exceeded 27,000 transactions the previous week. Most analysts view the significant surge in BTC usage as an unusual development as the country seeks ways to manage its economic environment.
Read also: BRICS Countries: Argentine Peso Devalues by Over 50% Under Milie Leadership
Moreover, the renewed interest in Bitcoin is a clear shift for this country. According to Lemon's report in February, 80% of Argentina's cryptocurrency purchases were stablecoins. These assets pegged to the dollar indicated a continued reliance on the dollar. However, the situation seems to be changing now.
It's not just Lemon seeing this change. Manuel Boderoyte, CEO of the local cryptocurrency wallet manufacturer Belo, also recognizes a similar shift. In particular, the purchase volume of Bitcoin and Ethereum has increased tenfold.
Furthermore, he points out that Argentine citizens have decided to "buy Bitcoin when they see news of Bitcoin rising." Observing how the economy leverages these statistics will be crucial. Indeed, Milie does not shy away from his support for BTC. |
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Post time 2-4-2024 09:53:22
