Bitcoin Hits Record High in Argentina
Bitcoin has reached a new all-time high in Argentina, with a valuation of 40 million pesos per BTC. This comes as the country’s currency, the peso, has experienced a significant decline against the dollar in recent years.
Grassroots Adoption of Digital Assets
Due to Argentina’s history of economic instability and currency devaluation, citizens are turning to digital assets as a means of preserving their purchasing power. While stablecoins like USDT and USDC are preferred for saving and converting local earnings, Bitcoin is not as popular.
Chainalysis’ research shows that Argentina ranks 15th globally in terms of digital asset adoption. Underground peer-to-peer exchanges, known as “crypto caves,” have emerged as black market exchanges where citizens can purchase stablecoins away from public view.
Economic Challenges and Reforms
Argentina is facing high inflation rates and an economic downturn. The OECD projects that inflation will reach 250.6% in 2024. President Javier Milei has implemented extensive reforms to address these challenges, including resolving the central bank’s balance sheets and making changes to the banking system.
Milei aims to dollarize the economy as the final phase of his reforms. He expects the banking system to be reformed within a year under his presidency.
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