Why Argentina Is Increasingly Adopting Crypto

Cryptocurrency has exploded in frontier markets like Argentina, where an unstable financial system and strong government intervention in the country’s economy has pushed an increasing number of Argentines toward the decentralized cryptocurrency, according to a new report from the BBC.

The Argentine peso, the country’s national currency, is already highly volatile and subject to a raft of financial controls that make buying and investing with the currency increasingly onerous for everyday citizens. Amid this uncertainty, cryptocurrency has enjoyed a stratospheric boon. According to Chainalysis, Argentines earned $1.86 billion in cryptocurrency in 2021.

“When you have restrictions, you need tools for freedom,” Jerónimo Ferrer, a crypto enthusiast in Argentina, told BBC News.

In the 1990s, Argentina’s financial system was in dire straits, with citizens finding their lifelong savings vanishing and personal bank account completely frozen. Today, the situation is still precarious, with Argentines of all income levels facing restrictions on transactions in foreign currencies.

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