Bitcoin Demand Surges in Argentina Amid Peso Devaluation

Bitcoin is experiencing a surge in demand in Argentina, fueled by citizens aiming to safeguard their assets amid the devaluation of peso.

Argentina has seen its greatest demand for Bitcoin in 20 months as the country’s citizens try to hold on to their assets in the face of the continuing devaluation of the Argentine peso (ARS), according to a recent report.

In the week ending March 10, approximately 35,000 clients in Argentina acquired Bitcoin, which is double the weekly average compared to 2023, according to statistics received from cryptocurrency exchange Lemon Cash, as reported by Bloomberg on March 20.

An important contributor to the surge in demand is the persistent depreciation of the national currency. 

Since March 2023, when it was worth 0.0049 USD per ARS, the value of the ARS has dropped fourfold against the US dollar, reaching 0.0012 USD at the time of publication.

Lemon was not the only platform experiencing a spike in demand. Other prominent Argentine exchanges, such as Ripio and Belo, recorded similar tendencies.

Manuel Beaudroi, CEO of the digital wallet Belo, claims that Argentine stablecoin purchases fell from 70% to 60% because of the increased interest in Bitcoin due to its recent price boom.

“The user decides to buy Bitcoin when they see the news that the currency is going up, while stablecoin is more pragmatic and many times used for transactional purposes, as a vehicle to make payments abroad.”

Additionally, he asserted that Belo has witnessed a “tenfold increase in 2024 compared to the same period last year” in Bitcoin and Ethereum volume. 

Stablecoins may still have some Argentine fans, according to a new report, who are opting not to buy them on the country’s most popular exchanges.

Media reports from February 12 claim that Argentines are trying to escape the country’s strict currency controls and rising inflation by buying USD stablecoins on underground markets, also known as “crypto caves” in the local language.

On the other hand, digital currency is becoming more popular for certain purchases around the nation.

Diana Mondino, the minister of foreign affairs, international commerce, and worship, made the assertion in December 2023 that the country will permit the use of Bitcoin and other cryptocurrencies under specific conditions as part of a decree aiming at economic reform and deregulation.

The third-most populous city in Argentina, Rosario, had its landlord and tenant sign a lease specifying that the renter would pay monthly in Bitcoin after the verdict.