Argentine love for US dollar replaced by rush to bitcoin

Argentine love :

for US dollar replaced by rush to bitcoin

Argentina and Bitcoin

Argentina's common savings strategy, which includes exchanging pesos in US

dollars, is being replaced by investment in bitcoin, which has recently fared better.

Figures from the local cryptocurrency exchange platform "Lemon" indicate that

bitcoin purchases have risen to a 20-month high, as Argentines seek to explore

better alternatives to the dollar

 whose value has been monitored by President Milley's policies.

Dollar fever :

calms in Argentina as bitcoin rises

1. Bitcoin is rising in Argentina
2. as an alternative to the US dollar to
3. counter inflation rates in the country's economy.

Figures published by Lemon, one of Argentina's largest domestic trading

platforms, indicate that bitcoin purchases have risen to a 20-month high.

It reached approximately 35,000 operations in the week ending March 20.

This rise was continuing :

with more than 27,000 bitcoin purchases recorded in the previous week.

• This rush to bitcoin is seen as uncommon by analysts

• with Argentines relying on the US dollar to deal

• with the deterioration of their economy.

While other Latin American countries were more open to using bitcoin and other

cryptocurrencies as investment tools, Argentina was different. 

According to a report by Lemon in February

80% of all cryptocurrency :

• purchases in Argentina in 2023 relate to stablecoins

• and 70% of deposits processed in 2023 include USDT,

• the largest stablecoin linked to the dollar in the cryptocurrency market.

However, this behaviour is not only limited to the Lemon platform, but Bellew

another local portfolio, reports that the volume of purchases from ether

and bitcoin has increased tenfold compared to the same period last year. 

The CEO of Belo, Manuel Biodroa, stated that the rise in

the price of bitcoin had also negatively affected the popularity of stablecoins.

Biodrua added:

"The user decides to buy bitcoin when he sees the news of currency appreciation

while the stablecoin is more beneficial and often used for transaction purposes

as a means of making payments abroad."

This rush to bitcoin :

and stablecoins can be linked to the Argentine peso's relatively strong

performance against the US dollar. President Javier Milley's economic

policies have restricted the value of the dollar by banning the printing of

funds and rebuilding dollar reserves in the central bank.

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