A report published on February 9 by cryptocurrency exchange Bitso found that Bitcoin was not the most purchased cryptocurrency in Argentina given the political climate there. The queens for now were the stablecoins Tether (USDT) and USD Coin (USDC).
According to data from report, which collected information from about 1.2 million Argentine users in the second quarter of 2023, these two stablecoins accounted for more than 60% of purchases on the platform. Followed by Bitcoin, which accounted for 16%. It's worth keeping that in mind The report only collects data from the platformand not the entire Argentine cryptocurrency ecosystem.
This behavior reflects how Argentinians have sought protection from high inflation rates I experienced it in the country last year highest inflation in the regionand surpassed Venezuela with 211%.
Rampant inflation has forced Argentines to search Alternatives to protect your savings, taking into account the restrictions that the South American country has on the free acquisition of foreign currencies. And this is in the middle of waiting for one of Javier Milei's campaign promises: dollarization.
Even Tether itself, the issuing company behind USDT, has stated that the crypto dollar, i.e. stablecoins, will be an engine that could drive dollarization in the country, as CriptoNoticias reports. So this Bitso chart could be a reflection of that.
An important point to highlight in this report is that while stablecoins were the most purchased cryptocurrencies, They are still far behind the most used cryptocurrencies in Argentina. Bitcoin comes first with 48%, followed by stablecoins with 26%. In third place is Ethereum with 8%.
For now, it remains to be seen whether the libertarian policies of the new President Javier Milei could have an impact on these numbers, because if inflation is not reduced, the numbers will continue to rise.