Argentina Emerges as Leading Buyer of Stablecoins in Latin America
Argentina has become the top purchaser and holder of stablecoins in Latin America, according to a report by Bitso, a Mexican-founded crypto exchange. The report, titled “Crypto Landscape in Latin America: Report 2H 2023,” explores the crypto market trends in several Latin American countries, including Argentina, Colombia, Brazil, and Mexico.
Argentinians Prefer Digital Dollars Over Bitcoin
The report reveals that amidst economic turmoil, 60% of Argentine crypto purchases on Bitso were allocated to dollar-based stablecoins such as USDT and USDC, while only 13% were dedicated to Bitcoin. This is in contrast to other countries in the region where stablecoin purchases ranged between 31% and 40% of total crypto acquisitions.
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Bitso attributes the significant demand for stablecoins in Argentina to the prevailing political and economic context, where citizens seek alternatives to combat inflation and currency devaluation.
Bitcoin Remains Popular Among Latin American Users
Despite the preference for stablecoins in Argentina, Bitcoin remains the preferred cryptocurrency among Latin American users overall. It accounts for 53% of portfolio holdings, slightly above the global average of 50.4%. Stablecoins rank second in preference, with notable growth observed in Colombia and Argentina.
Growing Interest in Cryptocurrencies in Response to Economic Uncertainty
The report highlights that there is a growing interest in cryptocurrencies across Latin America due to economic uncertainties and currency devaluation. Bitso, with over 8 million users in the region, reflects this growing interest and adoption of cryptocurrencies.
Overall, Argentina stands out as the leading buyer of stablecoins in Latin America, driven by its economic challenges and citizens’ desire for more stable options to protect their wealth from devaluation.
