Argentinians are turning to Bitcoin in the face of inflation and economic decline. According to the head of Binance in Latin America, Maximiliano Hinz, the number of active crypto trading accounts has surged by 1000% since last year in Argentina.
Bitcoin and other cryptocurrencies are beginning to enjoy increasing patronage from Argentinians as residents seek ways to offset inflation.
Confirming the development to global news agency AFP News, Hinz said:
The number of user accounts for investing in cryptocurrencies has multiplied by ten in Argentina since 2020.
Argentina has been badly hit by rising double-digit inflation levels for the past three years. The nation’s sovereign currency, the peso, has been on a downward spiral. Moreover, the country’s economy has been in recession since 2018 while its GDP dropped by roughly 10% last year.
Although Argentinians typically turn to the U.S. dollars to offset inflation, this option is proving to be unviable lately. For this reason, residents are jumping on the “Bitcoin as a store of value” narrative.
Hinz disclosed that there are now roughly two million trading accounts in the country. Marcos Zocaro, digital assets specialist also said that: “It is no coincidence that Argentina and Venezuela, countries with high inflation, are the main crypto poles in South America… I have older clients who used to be afraid of making a fixed deposit with a bank but are buying cryptocurrency without fear of risk.”
Investors are generally turning to cryptocurrencies in the face of economic woes. Recall that Google searches for Bitcoin recently spiked by over 550% in Turkey in response to shaky government decisions.