Argentinaโs Cryptocurrency News: Following El Salvadorโs Path
Argentina is making headlines in the cryptocurrency markets, and it appearsย to be following a similar path to El Salvador. Althoughย while El Salvador has a history of poverty, Argentina was once a prosperous country. Nonetheless, both countries have faced issues with their national currencies.
El Salvador officially adopted the Unitedย States dollar as its national currency in 2001, a process known as dollarisation. In 2021, the country made headlines again by declaring Bitcoinย (BTC) as legal tender. Argentina, on the other hand, has its national currency wasย known the Peso (ARS), which has been devalued over the years due to economic crises and currency mismanagement.
Argentinaโs Troubled Currency History
The Argentine Peso has experienced wholeย lotย of devaluation. In just 30 years, itsย price hasย dropped by 99% against the Unitedย States dollar. Given the countryโs history of economic crises and currency mismanagement, itโs not surprising that Argentina is considering dollarisation, just like El Salvador.
The Probable Impact on Cryptocurrency Markets and the Presidential Election
The outcome of Argentinaโs presidential election on October 22 is critical. Leading the polls is Javier Milei, who supports dollarisation and even Bitcoin. If he wins, Argentina could not only abandon the Peso but likewise make Bitcoinย (BTC) its legal tender. With a population of nearly 46 Million and a significantly higher GDP than El Salvador, the impact on the cryptocurrency markets mayย be significant.
Hot Take: Argentinaโs Influence on Cryptocurrency Adoption
Althoughย while the impact on the cryptocurrency markets couldย be modest, theย latestย information of Bitcoinย (BTC) becoming legal tender in Argentina could pave the way for other countries facing similar situations. Asย ofย now, only El Salvador and the Central African Republic have declared Bitcoinย (BTC) legal tender. Nonetheless, 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 Bitcoinย (BTC) as legal tender after dollarisation.
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