Bitso, a leading crypto exchange in Latin America, has released a report highlighting the strong adoption of stablecoins among Argentines. The report shows that six out of every ten cryptocurrency purchases in Argentina during Q1 and Q2 included stablecoins, which are popular as a hedge against inflation and devaluation.
According to Bitso’s “Latam’s Crypto Landscape” report, Argentines lead the region in stablecoin purchases, which can be attributed to cultural factors, exchange rate variations, and high inflation levels experienced in the country during the first half of 2024. Argentines value stablecoins as a means of preserving the value of their savings, rather than seeing them solely as investment options.
Julian Colombo, the general director of Bitso Argentina, noted that the adoption of stablecoins has been a recurring trend in the Argentine cryptocurrency market. He explained that the stability of the exchange rate in 2024 contributed to a shift towards more volatile cryptocurrencies like Bitcoin or Ether.
During Q1 and Q2, stablecoins accounted for a significantly higher percentage of purchases in Argentina compared to the regional average of 36%. Colombo pointed out that these purchases were primarily motivated by the need to protect the value of assets, with many people buying cryptocurrency when they receive their salaries.
In contrast, Bitcoin only accounted for 12% of transactions in Argentina, less than half of the regional average. However, Colombo highlighted that Bitcoin still holds a place in the wallets of Argentines as a savings or investment asset, while stablecoins are mainly used for transactions.
Other exchanges have also reported increased Bitcoin investments in March, which they attribute to the relative strength of the Argentine peso against the US dollar.