According to a recent report by Mexican-founded crypto exchange Bitso, Argentina has become the top buyer and holder of stablecoins in Latin America over the past six months.
Around 60% of Argentine crypto purchases on Bitso were for dollar-based stablecoins (USDT and USDC), and just 13% were for bitcoin, in contrast to Colombia, Brazil, and Mexico, where stablecoin purchases accounted for 31% to 40% of total crypto purchases.
This increase is because of the tough economic and political situation in Argentina, making many people see stablecoins as a way to protect their money from inflation and the dropping value of the peso.
In 2023, Argentina’s inflation rate reached around 211.4%, and a report from Chainalysis in the same year showed that Argentina is the second-highest country in Latin America for using crypto and ranks 15th in the world.
While not fully endorsing Bitcoin, the new president of the country has expressed positive sentiments, referring to it as “the return of money to its original creator, the private sector.” Milei has also labeled central banking as “a scam.” Bitso, the exchange, reports a user base exceeding 8 million across Latin America.