Argentina’s Crypto News: Following El Salvador’s Path
Argentina is making headlines in the crypto markets, and it seems to be following a similar path to El Salvador. While El Salvador has a history of poverty, Argentina was once a prosperous country. However, both nations have faced issues with their national currencies.
El Salvador officially adopted the US dollar as its national currency in 2001, a process known as dollarisation. In 2021, the country made headlines again by declaring Bitcoin as legal tender. Argentina, on the other hand, has its national currency called the Peso (ARS), which has been devalued over the years due to economic crises and currency mismanagement.
Argentina’s Troubled Currency History
The Argentine Peso has experienced significant devaluation. In just 30 years, its value has fallen by 99% against the US dollar. Given the country’s history of economic crises and currency mismanagement, it’s not surprising that Argentina is considering dollarisation, just like El Salvador.
The Potential Impact on Crypto Markets and the Presidential Election
The outcome of Argentina’s presidential election on October 22 is crucial. Leading the polls is Javier Milei, who supports dollarisation and even Bitcoin. If he wins, Argentina could not only abandon the Peso but also make Bitcoin its legal tender. With a population of nearly 46 million and a significantly higher GDP than El Salvador, the impact on the crypto markets could be significant.
Hot Take: Argentina’s Influence on Crypto Adoption
While the impact on the crypto markets may be modest, the news of Bitcoin becoming legal tender in Argentina could pave the way for other countries facing similar situations. Currently, only El Salvador and the Central African Republic have declared Bitcoin legal tender. However, countries like Turkey and Venezuela, where their national currencies are under pressure, may follow suit in the future. It remains to be seen if Argentina will take the next step and adopt Bitcoin as legal tender after dollarisation.
By
By
By
By