Stablecoins Lead the Charge as Crypto Buying Accelerates in Argentina
Crypto adoption in Argentina continues to rise amid soaring hyperinflation. A new survey revealed that 17% of people in the country bought crypto late year – with over 50% of people of that amount choosing stablecoins.
The data was published in a survey conducted in Latin American countries by Americas Market Intelligence, and reported by Memo. The researcher spoke to 2,400 smartphone users in November 2022 and found that 17% of adults in Argentina said they had bought cryptocurrencies “as a form of savings or investment” in the past 12 months.
The same researcher conducted a similar survey in November 2021, with 12% of respondents stating they had bought tokens. The 5% rise could well be attributed to inflation: Argentina’s inflation rate last year was the highest in the world, at over 90%.
Indeed, 53% of the Argentine respondents who stated that had bought cryptocurrencies in the last year set they had bought USD-pegged stablecoins. And 46% said that they had done so in an effort to “protect their savings against inflation.”
Fiat peso prices versus the USD over the past year. (Source: XE.com)
While over-the-counter and peer-to-peer transaction volumes remain high in Latin America, only 21% of those surveyed in Argentina stated that they used these methods.
Instead, 79% of respondents in the country said they used major crypto exchanges to buy their coins.
Beyond Argentina? Stablecoins, Other Tokens Gain Popularity in LATAM
Last week, a leading crypto pay facilitator explained that more Argentineans than ever were choosing to work for companies that pay them in crypto rather than fiat.
And in July 2022, investors responded to news of the economy minister’s resignation by buying tether (USDT). The government has attempted to stabilize the troubled fiat peso by placing caps on the amount of foreign currency citizens are allowed to buy at banks.
This, many have noted, has led to a large and prolonged spike in stablecoin purchases in the nation, with tokens like bitcoin (BTC) also gaining popularity.
Bitcoin-buying volumes on some of Latin America’s biggest crypto exchanges over the past two days. (Source: CriptoYa)
Adoption figures from elsewhere in the region were similarly high, with 14% of Colombians and Brazilians stating that they had taken the crypto plunge.
That number was lower among Mexicans, Peruvians, and Chileans – with under 10% of respondents in these nations stating that they had bought crypto.