Argentina has been named the most crypto-friendly country in the Latin American region, ahead of Mexico, Brazil and Peru. The country’s citizens use cryptocurrency as a tool to fight inflation.
A recent report, “The Cryptocurrency Revolution in Latin American Payments,” by Americas Market Intelligence (AMI), showed that the crypto adoption initiatives in the Latin American region is gaining momentum. Argentina was named the most crypto-friendly country in the area, with its citizens using digital assets as a means to counter inflation.
Americas Market Intelligence has been tracking the growing adoption of cryptocurrency in the Latin American region for years. In the report, the AMI team examined key implementation factors and strategic data for the crypto market in Latin America.
The AMI study shows that Latin Americans are interested in using cryptocurrencies. This is especially true in Argentina, where 12% of the population owns digital assets. In comparison, in Brazil the figure is 7%, in Mexico — 6%, in Peru — 5%.
The AMI analysts believe that the massive adoption of cryptocurrencies in Argentina is primarily due to the growing inflation rate, which has already reached 60%. The data show that more than 37% of Argentines have fallen below the poverty line because of inflation and are ready to turn to crypto in general and Bitcoin (BTC) in particular.
However, the mass adoption of digital currencies in the country is hindered by an order from Argentina’s Central Bank prohibiting financial institutions from dealing with cryptocurrencies.
Despite restrictions on using cryptocurrencies, more and more Argentines are investing in digital assets. Along with BTC, citizens are increasingly turning to stablecoins, seeing them as a way to keep their savings in US dollars. Such a measure is especially relevant for the residents of the country due to the fact that the Argentine authorities maintain strict control over the movement of foreign exchange capital.
It is worth noting that the President of Argentina Alberto Fernández believes that the crypto sector helps to curb inflation, but tight regulation of the market is a must for the country. The president also stresses that special care should be taken when it comes to the global adoption of digital assets.
Latin America is moving in large steps toward the adoption of cryptocurrencies. Recall that the Panamanian Legislature approved a bill regulating the cryptocurrency market and Cuba is planning to issue licenses for digital assets.
